What is the connection between wealth and happiness? Previous research has found that while money can purchase happiness, it reaches a nadir at around US$75,000 per year.
New research, on the other hand, suggests differently.
A recent study demonstrated that happiness improves linearly with reported income (logarithmic) and continues to rise beyond the US$80,000/year barrier, based on over a million real-time reports from a large U.S. sample group.
We'll go through the research methods in more detail below, as well as a few plausible reasons why higher wages may increase people's happiness levels.
New research, on the other hand, suggests differently.
A recent study demonstrated that happiness improves linearly with reported income (logarithmic) and continues to rise beyond the US$80,000/year barrier, based on over a million real-time reports from a large U.S. sample group.
We'll go through the research methods in more detail below, as well as a few plausible reasons why higher wages may increase people's happiness levels.
How is Happiness Measured?
Previous studies on happiness and income have relied on retroactive data, which can lead to human memory errors. This current study, on the other hand, relies on real-time, logged data from a mood tracking app to provide a more realistic representation of respondents' overall happiness.
Random prompts were also used to collect data over time, with dozens of entries documented for each respondent. This provides a more comprehensive picture of a person's overall health.
In this study, two types of happiness were assessed:
Higher salaries enhanced both types of well-being, but evaluative well-being indicated a more pronounced divide between the lower and higher income groups.
Random prompts were also used to collect data over time, with dozens of entries documented for each respondent. This provides a more comprehensive picture of a person's overall health.
In this study, two types of happiness were assessed:
- Well-being that has been felt
- The mood and feelings of a person throughout their day.
Higher salaries enhanced both types of well-being, but evaluative well-being indicated a more pronounced divide between the lower and higher income groups.