The dynamic relationship between wealth and subjective well-being among mid-life and older adults in Israel

Accumulated wealth, as a store of economic means and consumption potential, is a particularly relevant resource in later life, when labor market income terminates or declines, and state support is limited. Past research has linked economic resources, especially income, to various measures of subjective well-being (SWB). Only a few studies, however, have examined this relationship with a focus on late life. In this chapter we contribute to the growing literature on the association between wealth and SWB in two important ways. First, we focus on individuals at mid-life and old age; and second, we examine the relationship between wealth and SWB within a dynamic framework. We estimate a linear multilevel model for change using panel data collected in Israel as part of the Survey of Health, Ageing and Retirement in Europe (SHARE). We conclude that change in SWB is strongly affected by changing within-household levels of wealth even after socio-demographic attributes and life course transitions in the marital, employment and health domains are controlled for. Concurrently, an over-time trajectory of wealth depletion is associated with over-time decrease in SWB. Likewise, "over-indebtedness" tends to decrease SWB among mid- and late-life individuals. The findings and their meanings are discussed.