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<p>This systematic review examines the complex relationship between income, consumption, and subjective well-being, synthesizing 25 high-quality empirical and theoretical studies published between 2000 and 2025. Drawing on PRISMA guidelines and Scopus-indexed literature, the review explores the so-called “happiness-consumption paradox,” where increases in income and material consumption often yield diminishing or even negative returns to well-being. Key findings highlight the superior predictive power of consumption, particularly experiential and relational spending, over income in determining life satisfaction. Materialistic values and extrinsic goals are consistently linked to lower well-being, while spending aligned with intrinsic values and social connection fosters more enduring happiness. Cross-cultural differences and psychological mechanisms such as hedonic adaptation and social comparison are central to understanding these dynamics. Methodological advances, including longitudinal designs and econometric innovations, have enhanced causal inference. The review offers actionable insights for policy and practice, advocating for multidimensional, context-sensitive strategies to promote sustainable well-being in an era of material abundance.</p>

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Living Well or Spending More? A 25-Year Review of Income, Consumption, and Life Satisfaction

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年1月13日

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  • Alessandro Bortolotti,
  • Claudio Di Berardino,
  • Riccardo Palumbo

摘要

This systematic review examines the complex relationship between income, consumption, and subjective well-being, synthesizing 25 high-quality empirical and theoretical studies published between 2000 and 2025. Drawing on PRISMA guidelines and Scopus-indexed literature, the review explores the so-called “happiness-consumption paradox,” where increases in income and material consumption often yield diminishing or even negative returns to well-being. Key findings highlight the superior predictive power of consumption, particularly experiential and relational spending, over income in determining life satisfaction. Materialistic values and extrinsic goals are consistently linked to lower well-being, while spending aligned with intrinsic values and social connection fosters more enduring happiness. Cross-cultural differences and psychological mechanisms such as hedonic adaptation and social comparison are central to understanding these dynamics. Methodological advances, including longitudinal designs and econometric innovations, have enhanced causal inference. The review offers actionable insights for policy and practice, advocating for multidimensional, context-sensitive strategies to promote sustainable well-being in an era of material abundance.