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Journal Article

Putting a price tag on friends, relatives, and neighbours: using surveys of life satisfaction to value social relationships

Authors

Publication date

2008

Abstract

There is substantial evidence in the psychology and sociology literature that social relationships promote happiness for the individual. Yet the size of their impacts remains largely unknown. This paper explores the use of shadow pricing method to estimate the monetary values of the satisfaction with life gained by an increase in the frequency of interaction with friends, relatives, and neighbours. Using the British Household Panel Survey, I find that an increase in the level of social involvements is worth up to an extra £85,000 a year in terms of life satisfaction. Actual changes in income, on the other hand, buy very little happiness.

Published in

Journal of Socio-Economics

Volume

37 (4):1459-1480

DOI

http://dx.doi.org/10.1016/j.socec.2007.04.004

Subjects

Economics, Well Being, and Social Capital

Links

http://serlib0.essex.ac.uk/record=b1599800

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#509575


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