Although the effects of income and age on subjective well-being have been widely studied, research on the effects of income and age on financial satisfaction, a major life domain to which income has direct relevance, remains limited. Analyzing data from the General Social Surveys, this article empirically examined the effects of income and age on financial satisfaction. These findings suggest that the social-psychological mechanisms underlying the age differences in the effects of income on financial satisfaction might not reflect a clear-cut status attainment versus status maintenance framework. The findings also served to caution future financial satisfaction research in the choice of income measures and the age grouping.
Get full access to this article
View all access options for this article.
References
1.
AgrestiA. (1984). Analysis of ordinal and categorical data.New York: John Wiley and Sons.
2.
AgrestiA. (1990). Categorical data analysis.New York: John Wiley and Sons.
3.
AllisonP. D. (1999b). Comparing logit and probit coefficients across groups. Sociological Methods and Research, 28, 186–208.
4.
AllisonP. D. (1999b). Logistic regression using the SAS system: Theory and application.Cary, NC: SAS Institute.
5.
AllisonP. D. (2000). Multiple imputation for missing data: A cautionary tale. Sociological Methods and Research, 28, 301–309.
6.
BeattyP., & TuchS. A. (1997). Race and life satisfaction in the middle class. Sociological Spectrum, 17, 71–90.
7.
BeckS. H. (1982). Adjustment to and satisfaction with retirement. Journal of Gerontology, 37, 616–624.
8.
CampbellA.ConverseP. E., & RogersW. L. (1976). The quality of American life: Perceptions, evaluations, and satisfactions.New York: Russel Sage.
9.
CarpF. M., & CarpA. (1982). Test of a model of domain satisfactions and well-being: Equity considerations. Research on Aging, 4, 503–522.
10.
CarpF. M.CarpA., & MillsapR. (1982). Equity and satisfaction among the elderly. International Journal of Aging and Human Development, 15, 151–166.
11.
CloggC. C.PetkovaE., & HaritouA. (1995). Statistical methods for comparing regression coefficients between models. American Journal of Sociology, 100, 1261–1293.
12.
DavisJ. A., & SmithT. W. (1996a). General social surveys, 1972–1996. [machine-readable data file]. Principal investigator, DavisJ. A.Director and co-principal investigatorSmithT. W.. NORC (Ed.). Chicago: National Opinion Research Center, producer; Storrs, CT: The Roper Center for Public Opinion Research, University of Connecticut, distributor.
13.
DavisJ. A., & SmithT. W. (1996b). General social surveys: 1972–1996: Cumulative codebook.Chicago: National Opinion Research Center.
DienerE.DienerM., & DienerC. (1995). Factors predicting the subjective well-being of nations. Journal of Personality and Social Psychology, 69, 851–864.
16.
DienerE.SandvikE.SeidlitzL., & DienerM. (1993). The relationship between income and subjective well-being: Relative or absolute?Social Indicators Research, 28, 195–223.
17.
DonnenwerthG. V., & PetersonL. R. (1992). Institutionalization and well-being among the elderly. Sociological Inquiry, 62, 437–449.
18.
DoyleD., & ForehandM. J. (1984). Life satisfaction and old age: A reexamination. Research on Aging, 6, 432–448.
19.
FeltonB. J. (1987). Cohort variation in happiness: Some hypotheses and exploratory analyses. International Journal of Aging and Human Development, 25, 27–42.
20.
FenglerA. P., & JensonL. (1981). Perceived and objective conditions as predictors of the life satisfaction of urban and non urban elderly. Journal of Gerontology, 36, 750–752.
21.
FordyceM. W. (1988). A review of research on happiness measures: A sixty second index of happiness and mental health. Social Indicators Research, 20, 355–381.
22.
GeorgeL. K. (1992). Economic status and subjective well-being: A review of literature and an agenda for future research. In CutlerN. E.GreggD. W., & LawtonM. P. (Eds.), Aging, money, and life satisfaction: Aspects of financial gerontology (pp. 69–99). New York: Springer.
23.
GeorgeL. K.OkunM. A., & LandermanR. (1985). Age as a moderator of the determinants of life satisfaction. Research on Aging, 7, 209–233.
24.
HeadeyB.VeenhovenR., & WearingA. (1991). Top-down versus bottom-up theories of subjective well-being. Social Indicators Research, 24, 81–100.
25.
HennonC. B., & BurtonJ. R. (1986). Financial satisfaction as a developmental task among the elderly. American Behavioral Scientist, 29, 439–452.
26.
HenrettaJ. C., & CampbellR. T. (1976). Status attainment and status maintenance: A study of stratification in old age. American Sociological Review, 41, 981–992.
27.
HerzogA. R., & RodgersW. L. (1981). Age and satisfaction: Data from several large surveys. Research on Aging, 3, 142–165.
28.
HorleyJ., & LaveryJ. J. (1995). Subjective well-being and age. Social Indicators Research, 34, 275–282.
29.
HsiehC. M. (2001). Correlates of financial satisfaction. International Journal of Aging and Human Development, 52, 135–153.
30.
La BarberaP. A., & GürhanZ. (1997). The role of materialism, religiosity, and demographics in subjective well-being. Psychology & Marketing, 14, 71–97.
31.
LarsenR. J.DienerE., & EmmonsR. A. (1985). An evaluation of subjective well-being measures. Social Indicators Research, 17, 1–17.
32.
LarsonR. (1978). Thirty years of research on the subjective well-being of older Americans. Journal of Gerontology, 33, 109–125.
33.
LiangJ., & FairchildT. J. (1979). Relative deprivation and perception of financial adequacy among the aged. Journal of Gerontology, 34, 746–759.
34.
LiangJ.KahanaE., & DohertyE. (1980). Financial well-being among the aged: A further elaboration. Journal of Gerontology, 35, 409–420.
35.
LigonE. (1989). The development and use of a consistent income measure for the General Social Survey. GSS Methodological Report No. 64. Chicago: National Opinion Research Center.
36.
LongS. J. (1997). Regression models for categorical and limited dependent variables.Thousand Oaks, CA: Sage.
37.
PaternosterR.BrameR.MazerolleP., & PiqueroA. (1998). Using the correct statistical test for the equality of regression coefficients. Criminology, 36, 859–866.
38.
SAS Institute (1995). Logistic regression examples using the SAS system.Cary, NC: SAS Institute.
39.
ShmotkinD. (1990). Subjective well-being as a function of age and gender: A multivariate look for differentiated trends. Social Indicators Research, 23, 201–230.
40.
StockW. A.OkunM. A.HaringM. J., & WitterR. A. (1983). Age differences in subjective well-being: A meta-analysis. In LightR. J. (Ed.), Evaluation studies review annual. (Vol. 8, pp. 279–302). Beverly Hills, CA: Sage.
41.
StullD. E. (1988). A dyadic approach to predicting well-being in later life. Research on Aging, 10, 87–101.
42.
U.S. Bureau of Labor Statistics. (1996). Consumer price index—all urban consumers. Bureau of Labor Statistics Data [On-line], Available: http://stats.bls.gov/cgi-bin/surveymost.
43.
VeenhovenR. (1991). Questions on happiness: Classical topics, modern answers, blind spots. In StrackF.ArgyleM., & SchwarzN. (Eds.), Subjective well-being: An interdisciplinary perspective (pp. 7–26). Elmsford, NY: Pergamon Press.
