Skip to main content
Log in

Life Goals Matter to Happiness: A Revision of Set-Point Theory

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

Using data from the long-running German Socio-Economic Panel Survey (SOEP), this paper provides evidence that life goals matter substantially to subjective well-being (SWB). Non-zero sum goals, which include commitment to family, friends and social and political involvement, promote life satisfaction. Zero sum goals, including commitment to career success and material gains, appear detrimental to life satisfaction. Finding that conscious life goals matter can potentially make an important contribution to SWB theory. The most widely accepted theory—set-point or dynamic equilibrium theory—essentially claims that set-points are near-automatic consequences of hereditary characteristics, including personality traits. Life goals play no role in these theories and major life events are viewed as having only a transitory effect. The SOEP panel data show that, over a 15–20 year period, non-trivial minorities record substantial changes in their set-points. This paper shows linkages between these changes and (a) the personality traits of extraversion, neuroticism and internal locus of control and (b) choice of life goals.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. There is some debate about whether complete (100%) adaptation occurs. This is Easterlin’s view. An alternative account suggests that adaptation is typically about 70% (Frey and Stutzer 2002).

  2. Easterlin’s view is that Mehnert et al’s (1990) results, because they are based on a large scale panel study, are clearly preferably to the results reported in studies which show nearly complete adaptation to disability (see above).

  3. Ten items were included in 1990 and 1995 and then nine in 2004. The item dropped in 2004 related to the importance of having a wide circle of friends, which loaded on the altruism factor.

  4. The item relating to ‘fulfillment’ seemed borderline in terms of face validity but loaded so strongly on the success factor in 1990, 1995 and 2004 that it was decided to retain it.

  5. The item ‘having a circle of friends’ was included in 1990 and 1995 and also loaded on this factor.

  6. However, as is often the case, results using factor scores were somewhat weaker (smaller effect sizes).

  7. In practice, however, regression coefficients for the three indices were quite similar whether they were split at the mean or whether the full scale was used.

  8. These correlations are based on the 1–4 importance scales rather than a dichotomized index. Similarly, the correlation for life satisfaction is based on the full 0–10 scale.

  9. However, this may not be true of internal locus of control, which seems more likely to be modified by experience (Rotter 1966).

  10. The measure of income used is household disposable income adjusted for household size; i.e. equalized using the OECD equivalence scale of 1.0 for the household reference person, 0.5 for other adults and 0.3 for children under 15.

  11. Only the first of the two equations in Table 2 is reproduced for these sub-groups. Results were little different with extra ‘controls’, as in the second of the equations.

  12. A person could, of course, have competitive non-zero sum goals with regard to marriage; e.g. wanting to marry a wealthy heiress.

  13. Job satisfaction has been included in SOEP from inception, but in the present context it is an ambiguous life domain, since it offers prospects of achieving both success goals, and (at least for some people) altruistic goals. Satisfaction with family life was introduced for the first time in 2006.

  14. In principle the results in Table 4 could be subject to selection bias in that the sub-samples differ. That is, results are given for the different sub-sets of respondents who had partners, children and a job. It should be noted that a separate run, restricting the sample to those who gave responses for all life satisfaction and all four life domains, yielded almost identical results.

  15. As with previous measures of life goals, these average scores have been dichotomized at the mean for inclusion in regression equations.

  16. The mean score on the measure of persistence in pursuit of family goals (1–4 scale) was 3.43 with a standard deviation of 0.52. The mean score on change in life satisfaction (0–10 scale) was —0.62 with a standard deviation of 1.46.

References

  • Andrews, F. M., & Withey, S. B. (1976). Social indicators of well-being. New York: Plenum.

    Google Scholar 

  • Argyle, M. (2001). The psychology of happiness. New York: Routledge.

    Google Scholar 

  • Bandura, A. (1997). Self-efficacy: the exercise of control. New York: W.H. Freeman.

    Google Scholar 

  • Brickman, P. D., & Campbell, D. T. (1971). ‘Hedonic relativism and planning the good society’. In M. H. Appley (Ed.), Adaptation level theory. New York: Academic Press.

    Google Scholar 

  • Brickman, P. D., Coates, D., & Janoff-Bulmann, R. (1978). Lottery winners and accident victims: is happiness relative? Journal of Personality and Social Psychology, 36, 917–927.

    Article  Google Scholar 

  • Brief, A. P., Butcher, A. H., George, J. M., & Link, K. E. (1993). Integrating bottom-up and top-down theories of subjective well-being: the case of health. Journal of Personality and Social Psychology, 64, 646–653.

    Article  Google Scholar 

  • Campbell, A., Converse, P. E., & Rodgers, W. R. (1976). The quality of American life. New York: Sage.

    Google Scholar 

  • Clark, A. E., Georgellis, Y., Lucas, R. E., & Diener, E. (2004). Unemployment alters the set point for life satisfaction. Psychological Science, 15, 8–13.

    Article  Google Scholar 

  • Costa, P. T., & McCrae, R. R. (1980). Influences of extraversion and neuroticism on subjective well-being. Journal of Personality and Social Psychology, 38, 668–678.

    Article  Google Scholar 

  • Costa, P. T., & McCrae, R. R., (1991). The NEO PI-R. Odessa: Fla.

    Google Scholar 

  • Davidson, R. J. (1992). Emotion and affective style: hemispheric substrates. Psychological Science, 3, 39–43.

    Article  Google Scholar 

  • Davidson, R. J. (2002). Anxiety and affective style: role of prefrontal cortex and amygdale. Biological Psychiatry, 51, 68–80.

    Article  Google Scholar 

  • Diener, E., & Lucas, R. E. (1999). In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-being: the foundations of hedonic psychology (pp. 213–229). New York: Russell Sage.

    Google Scholar 

  • Diener, E., Lucas, R. E., & Scollon, C. (2006). Beyond the hedonic treadmill: revising the adaptation theory of well-being. Psychological Science, 61, 305–314.

    Google Scholar 

  • Diener, E., & Seligman, M. E. P. (2004). Beyond money: toward an economy of well-being. Psychological Science in the Public Interest, 5, 1–31.

    Article  Google Scholar 

  • Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: three decades of progress. Psychological Bulletin, 25, 276–302.

    Article  Google Scholar 

  • Dohmen, T. (2005). Risk attitudes. DIW Discussion Paper No. 511. Berlin: DIW.

  • Duesenberry, J. S. (1949). Income, saving and the theory of consumer behavior. Cambridge: Cambridge University Press.

    Google Scholar 

  • Easterlin, R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. In P. A. David, & M. W. Reder (Eds.), Nations and households in economic growth (pp. 89–125). New York: Academic.

    Google Scholar 

  • Easterlin, R. A. (2005). ‘Building a better theory of well-being’. In L. Bruni, & P. Porta (Eds.), Economics and happiness: framing the analysis. Oxford: Oxford University Press.

    Google Scholar 

  • Frank, R. H. (1985). The demand for unobservable and other nonpositional goods. American Economic Review, 75, 279–301.

    Google Scholar 

  • Frederick, S., & Loewenstein, G. (1999). In D. Kahneman, E. Diener & N. Schwarz (Eds.), Well-being: the foundations of hedonic psychology (pp. 302–329). New York: Russell Sage.

  • Frey, B. S., & Stutzer, A. (2002). Happiness and economics: how the economy and institutions affect human well-being. Princeton: Princeton University Press.

    Google Scholar 

  • Fujita, F., & Diener, E. (2005). Life satisfaction set-point: stability and change. Journal of Personality and Social Psychology, 88, 158–164.

    Article  Google Scholar 

  • Gerlitz, J.-Y., & Schupp, J. (2005). Zur Erhebung der Big-Five-basierten persoenlichkeitsmerkmale im SOEP. www.diw.de/deutsche/produkte/publikationen/researchnotes/docs/papers/rn4.pdf.

  • Harlow, R. E., & Cantor, N. (1996). Still participating after all these years: a study of life task participation in later life. Journal of Personality and Social Psychology, 71, 1235–1249.

    Article  Google Scholar 

  • Headey, B. W. (2006a). Subjective well-being: revisions to dynamic equilibrium theory using national panel data and panel regression methods. Social Indicators Research, 79, 369–403.

    Article  Google Scholar 

  • Headey, B. W. (2006b). Happiness: revising set point theory and dynamic equilibrium theory to account for long term change. DIW Discussion Paper No. 607. Berlin: DIW.

  • Headey, B. W., & Wearing, A. J. (1989). Personality, life events and subjective well-being: towards a dynamic equilibrium model, Journal of Personality and Social Psychology, 57, 731–739.

    Article  Google Scholar 

  • Headey, B. W., & Wearing, A. J. (1992). Understanding happiness: a theory of subjective well-being. Melbourne: Longman Cheshire.

    Google Scholar 

  • Hirsch, F. (1976). Social limits to growth. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Hollaender, H. (2001). On the validity of utility statements: standard theory versus Duesenberry’s. Journal of Economic Behavior and Organisation, 45, 227–249.

    Article  Google Scholar 

  • Huppert, F. (2005). Positive mental health in individuals and populations. In: F. Huppert, N. Baylis, & B. Keverne (Eds.), The Science of well-being (pp. 307–340). Oxford: Oxford University Press.

    Google Scholar 

  • Kagel, J. H., & Roth, R. E. (Eds.) (1995). The handbook of experimental economics. Princeton: Princeton University Press.

    Google Scholar 

  • Kasser, T., & Kanner, A. D. (Eds.) (2004). Psychology and consumer culture: the struggle for the good life in a materialistic world. Washington, DC: American Psychological Association.

    Google Scholar 

  • Kirkcaldy, B. D., Furnham, A., & Martin, T. (1998). National differences in personality, socio-economic, and work-related economic variables. European Psychologist, 3, 255–262.

    Article  Google Scholar 

  • Kluckhohn, F. R., & Strodbeck, F. L. (1961). Variations in value orientations. Evanston: Row, Peterson.

    Google Scholar 

  • Krampen, G. (1981). IPC-Fragebogen zu Kontrollueberzeugungen (“Locus of Control”). Gottingen, Toronto, Zurich: Verlag fuer Psychologie.

    Google Scholar 

  • Lane, R. E. (2000). The loss of happiness in market democracies. New Haven: Yale University Press.

    Google Scholar 

  • Lazarus, R. S., & Folkman, S. (1984). Stress, appraisal and coping. New York: Springer.

    Google Scholar 

  • Lucas, R. E., Clark, A. E., Georgellis, Y., & Diener, E. (2003). Reexamining adaptation and the set point model of happiness: reactions to change in marital status. Journal of Personality and Social Psychology, 84, 527–539.

    Article  Google Scholar 

  • Lykken, D. (1999). Happiness: what studies on twins show us about nature, nurture and the happiness set-point. New York: Golden Books.

    Google Scholar 

  • Lykken, D., & Tellegen, A. (1996). Happiness is a stochastic phenomenon. Psychological Science, 7, 186–189.

    Article  Google Scholar 

  • Mehnert, T., Kraus, H. H., Nadler, R., & Boyd, M. (1990). Correlates of life satisfaction in those with a disabling condition. Rehabilitation Psychology, 35, 3–17.

    Article  Google Scholar 

  • Ng, Y.-K. (1978). Economic growth and social welfare: the need for a complete study of happiness. Kylos, 31, 575–587.

    Google Scholar 

  • Nolte, H., Weischer, C., Wilkesmann, U., Maetzel, J., & Tegethoff, H. -G. (1996). Kontrolleinstellungen zum Leben und zur Zukunft – Auswertung eines neuen sozialpsychologischen Itemblocks im Sozio-oekonomischen Panel (mimeo).

  • Nickerson, C., Schwarz, N., Diener, E., & Kahneman, D. (2003). Zeroing in on the dark side of the American dream: a closer look at the negative consequences of the goal for financial success. Psychological Science, 14, 531–536.

    Article  Google Scholar 

  • Okun, M. A., & George, L. K. (1984). Physician- and self-ratings of health, neuroticism and subjective well-being among men and women. Personality and Individual Differences, 5, 533–539.

    Article  Google Scholar 

  • Rilling, J. K., Sanfey, A. G., Aronson, J. A., Nystrom, L. E., & Cohen, J. D. (2004). Opposing BOLD responses to reciprocated and unreciprocated altruism in putative reward pathways. Neuroreport, 15, 2539–2543.

    Article  Google Scholar 

  • Roberts, B. W., Walton, K., & Viechtbauer, W. (2006). Patterns of mean-level change in personality traits across the life course: a meta-analysis of longitudinal studies. Psychological Bulletin, 132, 3–27.

    Google Scholar 

  • Roper-Starch Organisation. (1979). Roper reports 79–1. Storrs: University of Connecticut, The Roper Center.

  • Roper-Starch Organisation. (1995). Roper reports 95—1. Storrs: University of Connecticut, The Roper Center.

  • Rotter, J. B. (1966). Generalised expectancies for internal versus external control of reinforcement. Psychological Monographs, 80, 1–28, Whole No. 609.

    Google Scholar 

  • Samuelson, P. A. (1938). A note on the pure theory of consumer’s behavior. Economica, 5, 61–71.

    Article  Google Scholar 

  • Scitovsky, T. (1976). The joyless economy. Oxford: Oxford University Press.

    Google Scholar 

  • Scollon, C. N., & Diener, E. (2006). Love, work and changes in extraversion and neuroticism over time. Journal of Personality and Social Psychology, 91, 1152–1165.

    Article  Google Scholar 

  • Seligman, M. E. P. (2002). Authentic happiness: using the new positive psychology to realise your potential for lasting fulfillment. New York: Free Press.

    Google Scholar 

  • Thoits, P. A., & Hewitt, L. N. (2001). Volunteer work and well-being. Journal of Health and Social Behavior, 42, 115–131.

    Article  Google Scholar 

  • Veenhoven, R. (1993). Happiness in nations, subjective appreciation of life in 56 nations, 1946–92. Rotterdam: Erasmus University Press.

    Google Scholar 

  • Wagner, G. G., Frick, J. R., & Schupp, J. (2007). Enhancing the power of household panel studies—the case of the German Socio-Economic Panel Study (SOEP). Schmollers Jahrbuch 127(1) (forthcoming).

  • Wagner, G. G. & Schupp, J. (2007). New concepts, questions and measurement instruments in the German Socio-Economic Panel Study (SOEP). Schmollers Jahrbuch 127(1) (forthcoming).

  • Watson, N., & Wooden, M., (2004). ‘Assessing the quality of the HILDA Survey Wave 2 Data’. HILDA Technical Paper, 5/04.

  • Wengle, H. (1986). The psychology of cosmetic surgery: a critical overview of the literature 1960–1982. Part 1. Annals of Plastic Surgery, 16, 435–443.

    Article  Google Scholar 

  • Wessman, A. E., & Ricks, D. F. (1966). Mood and personality. New York: Holt, Rinehart and Winston.

    Google Scholar 

  • Wortman, C. B., & Silver, R. C. (1987). Coping with irrevocable loss. In G. R. Vanderbos, & B. K. Bryant (Eds.), Cataclysms, crises, catastrophes: psychology in action. Washington, DC: APA.

    Google Scholar 

Download references

Acknowledgements

Many thanks to Gert Wagner, Director of the German Socio-Economic Panel Survey (SOEP), for encouraging work on this paper and commenting extensively on an earlier draft. Thanks also to Alexander Wearing of Melbourne University for his comments on an earlier version.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bruce Headey.

Appendices

Appendix 1

Table 6 Bivariate Pearson correlations among main variables

Appendix 2

Table 7 Factor analysis of life goals in SOEP 1990: varimax rotation (N = 6,319)
Table 8 Factor analysis of life goals in SOEP 1995: varimax rotation (N = 10,295)
Table 9 Impact of life goals on life satisfaction 1990: ordinary least squares regressions
Table 10 Impact of life goals on life satisfaction 1995: ordinary least squares regressions

Rights and permissions

Reprints and permissions

About this article

Cite this article

Headey, B. Life Goals Matter to Happiness: A Revision of Set-Point Theory. Soc Indic Res 86, 213–231 (2008). https://doi.org/10.1007/s11205-007-9138-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-007-9138-y

Keywords

Navigation