Absolute Income,Relative Income and Subjective Well being:Empirical Test Based on the Sample Data of Urban and Rural Households in China
Based on the household survey,the paper empirically analyzes the relation between income and subjective well being. The results show that there is positive and significant correlation between absolute income and subjective well being,even if the effect of relative income is eliminated. Therefore,the income plays an important role in the improvement of subjective well being. But the correlation between subjective well being and income level is not strong,so we should pay attention to some non income factors.