Wednesday, 1 May 2013

Money Really Does Buy Happiness: The Higher A person's Income The More Satisfied They Are With Life, Says Economists

 Whoever said money can't buy happiness was very wrong, new research has found. 

According to an economic study, the more money a person has, the happier they are.
The latest study of 1,014 people contradicts previous research that said the correlation between money and happiness diminishes when the basic needs of a person are met.

People were asked to rate their levels of happiness and their income was recorded. 
Economists Betsey Stevenson and Justin Wolfers say in their paper the May 2013 American Economic Review, Papers and Proceedings that there is no evidence of a 'satiation' point in the link between money and happiness.

They wrote: 'While the idea that there is some critical level of income beyond which income no longer impacts well-being is intuitively appealing, it is at odds with the data.'
Everyone with an income of £306,250 a year or more classed themselves as 'very happy'.

The University of Michigan study found that all those earning £61,250 a year or more also described themselves as either very or fairly happy. 
 However, only 35 per cent of people taking home £6,125 - the equivalent of $10,000 in the exchange rate used in the study - claimed they were happy.
A total of 21 per cent in that income bracket said they were 'not too happy'. Do you agree?

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