Income, Perceptions and Subjective Well-Being in Hungary

Subjective well-being (SWB) is based on peoples personal evaluations of their own lives. Most measurements of SWB are obtained through questionnaires and interviews. Many aspects can influence our life satisfaction and our feeling of happiness such as personality, interpersonal relationships, demographics, environmental and economic factors. These observable facts are what make up objective well-being (OWB). By using OWB data as a proxy we should be able to predict an individual! s or society s life satisfaction. This paper focuses on income (an objective component) and satisfaction with income and importance of personal wealth (subjective components) and their effects on SWB data