Geospatial relative income and subjective well-being in Hong Kong: A spatiotemporal perspective concerning adjacent neighborhoods

Source abstract

Cities are composed of heterogeneous local contexts. This study investigates whether and how the well-being of urban dwellers is influenced by spatially structured contextual exposure within a localized area. Using geocoded survey data from the Hong Kong Panel Study of Social Dynamics, matched with official neighborhood-level statistics, we pay special attention to relative neighborhood income (RNI), an inter-neighborhood comparison reflecting a neighborhood’s relative income position compared with adjacent neighborhoods. The results show that living in neighborhoods with poorer income positions relates to lower subjective well-being (SWB). A positive change in RNI over time significantly enhances SWB, whereas a negative temporal change is not linked with a proportional decrease. We also find empirical support for Dusenberry’s hypothesis that relative household income (a household’s relative income position within the residential neighborhood) positively relates to SWB, with the effects of upward comparisons being more pronounced. The findings underscore the contextual effects of places that extend beyond individuals’ immediate residential neighborhoods and highlight their importance in neighborhood research.