life satisfaction

Introduction. Life satisfaction is an important social indicator of life quality of the population. Modern researches show that income is one of the most significant components of life satisfaction. The article describes the Easterlin paradox with regard to Russia, provides a statistical analysis of the relationship income, wealth and the level of life satisfaction in Russia. The article presents the main theoretical concepts which used in the economics of happiness and for analysis of empirical models. Methods. econometric methods and statistical analysis: cluster analysis, a binary choice models. To evaluate the income effect on life satisfaction in Russia marginal effects of income and probability increment of life satisfaction were estimated based on binary choice model of Russian Longitudinal Monitoring Survey (RLMS) for 2012. Results. А family, gender (men are happier than women), good health, own car has a positive effect on life satisfaction. On average income has a positive effect on life satisfaction, but this effect is nonlinear. The results confirm the adaptation effect with saturation point in 60000 rub.