10 January 2013

More Money Does Make You Happier

We find that well-being rises with income, whether we compare people in a single country and year, whether we look across countries, or whether we look at economic growth for a given country. Through these comparisons we show that richer people report higher well-being than poorer people; that people in richer countries, on average, experience greater well-being than people in poorer countries; and that economic growth and growth in well-being are clearly related. Moreover, the data show no evidence for a satiation point above which income and well-being are no longer related.
That is Daniel Sacks, Betsey Stevenson and Justin Wolfers in a new paper that analyzes previous research on the connection between money and well-being. No matter how you cut it, more money makes people happier. Maybe GDP is a good measure of well-being...