The Korea Local Administration Review

This study attempts to test the so-called “Easterlin Paradox”, simply, thatmoney does not buy happiness, in the context of Seoul city, Korea. Usingsamples from the Seoul Survey, the study found that higher income iscorrelated with higher level of subject well-being of Seoul citizens, with thedivides appearing geographically among the 25 “Gu” areas. The results suggestthat public policy should focus more on bridging the divides between the richand the poor, especially those in rich areas and poor ones. As this study usesonly 2012 survey data, some methodological cautions need to be mentioned forfuture studies, and longitudinal data will be necessary to resolve thoselimitations.
□ Keywords: Easterlin Paradox, Marginal Utility of Income, Relativity of SubjectWell-being