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Research on Aging
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Perceived Income Adequacy among Older Adults

Issues of Conceptualization and Measurement, with an Analysis of Data

Lawrence E. Hazelrigg

Florida State University

Melissa A. Hardy

Florida State University

Several scholars have argued that because of problems associated with the use of a uniform "objective" standard in assessments of well-being, more attention should be given to persons' own judgments of well-being. This article develops a conceptual mapping of processes involved in judgments of income adequacy and then tests a number of derived hypotheses with data from a probability sample of older adults. The results indicate that relative standing as well as health status, household size, and level of income have independent effects on judgments of income adequacy; that income is endogenous to the judgment process; that effects of demographic variables and labor supply are sensitive to that endogeneity; and that as older adults age, they tend to discount needs relative to available income. Even under conditions of poverty, there is a strong bias toward positive judgments of adequacy.

Research on Aging, Vol. 19, No. 1, 69-107 (1997)
DOI: 10.1177/0164027597191004
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