Andrew E. Clark, Sarah Flèche, Richard Layard, Nattavudh Powdthavee, and George Ward
- Published in print:
- 2019
- Published Online:
- May 2020
- ISBN:
- 9780691196336
- eISBN:
- 9780691196954
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691196336.003.0003
- Subject:
- Economics and Finance, Behavioural Economics
This chapter shows that, while happiness is not the same with income, income still affects happiness. Indeed, the effect of income on happiness is one of the best-measured effects in all happiness ...
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This chapter shows that, while happiness is not the same with income, income still affects happiness. Indeed, the effect of income on happiness is one of the best-measured effects in all happiness research. It presents the evidence to this effect. Again, the chapter begins with evidence from the British Cohort Study, mostly cross-sectional. It then goes on to time-series data on individuals drawn from three panel studies for Britain, Germany, and Australia, as well as cross-section data on the United States. The chapter also examines the key role of social comparisons and adaptation, before tracing how the income factor is determined by earlier childhood experiences.Less
This chapter shows that, while happiness is not the same with income, income still affects happiness. Indeed, the effect of income on happiness is one of the best-measured effects in all happiness research. It presents the evidence to this effect. Again, the chapter begins with evidence from the British Cohort Study, mostly cross-sectional. It then goes on to time-series data on individuals drawn from three panel studies for Britain, Germany, and Australia, as well as cross-section data on the United States. The chapter also examines the key role of social comparisons and adaptation, before tracing how the income factor is determined by earlier childhood experiences.
