ABSTRACT
This chapter discusses the relationship between household income and wellbeing outcomes such as happiness, enjoyment, achievement, control, purpose, satisfaction with life in general, satisfaction with overall quality of life and satisfaction with overall quality of life in Singapore. It measures about perceptions of economic wellbeing and how satisfied respondents were about their lives and life domains. The chapter examines whether the related factors, such as financial satisfaction and satisfaction with standard of living, play a part in enhancing wellbeing. Wellbeing outcomes encompass both affective aspects, such as happiness and positive or negative affect, and cognitive aspects, such as life satisfaction. Theorists have counter argued that higher absolute incomes do not necessarily lead to higher levels of happiness, a phenomenon that has been termed the Easterlin Paradox. Various theories have been devised to explain the Easterlin Paradox. The key ones are related to concepts such as adaptation, social comparison and aspirations.
