A Cross-Country Analysis of Perceived Economic Status and Life Satisfaction in High- and Low-Income Countries

What are the challenges posed by the analysis of self-reported life satisfaction and material wellbeing/hardship? We explore the complex relationship between objective and subjective indicators using primary data from two diverse sources-a questionnaire survey of 3883 undergraduate students in eight economically developed and developing countries and interviews with 310 adults in the Dominican Republic. Our findings underline the value of subjective data; at the same time, they stress the importance for development researchers of gaining a deeper understanding of what subjective data really tell us, alongside the need for a richer conceptualization of individual emotions and states of mind.