Abstract

ABSTRACT This paper empirically explores processes of adaptation and social comparison advanced in the “hedonic treadmill” explanation for the income-happiness paradox, as well as advances recent theories that point to the roles of poverty, inequality, and connectedness in aspirations behaviour. Subjective well-being and aspirations are measured using the South African Social Attitudes Study of 2006, a year characterised by a peak in post-apartheid economic growth and inequality. Inequality and connectedness are found to play decisive roles in experiences of social comparison and relative deprivation. Income growth paths that contribute to higher inequality and/or lower connectedness are related to narrower aspirations gaps and aspirations failure amongst the objectively poor, whilst also widening the aspirations gaps of those engaged in upward social comparisons. Conversely, inequality tied to greater connectedness inspires aspirations, although not beyond a level that could potentially frustrate. This has implications for subjective well-being, indicated to decrease significantly with aspirations gaps.

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