Easterlin paradox revisited: Do increases in income bring higher levels of income satisfaction?

In this paper, we examine the relationship between income and satisfaction in pool of developed European economies, for period 2002 2018. Although nexus most subjective well-being indicators is frequently investigated prior studies, research investigating over time non-existing. We find that during observed real disposable household significantly increased, while with remained constant. Furthermore, analysis within hierarchical linear modeling shows between-country variations affect satisfaction, not case time. Our findings support notion Easterlin paradox, which indicates long-run increases do lead to higher levels well-being. Explanations such results may be found social comparison theory, hedonic adaptation theory aspiration level theory: increasing does bring positive effects on due relevance relative absolute income, changes, or aspirations resulting from rise.