This variance is where things get interesting. To show the income happiness correlation across countries the chart plots the relationship between self reported life satisfaction on the vertical axis and gdp per capita on the horizontal axis.
In the usa the average income increased by 300 from 1970 to 1990 but the americans sense of well being didn t improve with the increase in their pay checks.
Income and happiness statistics. The relation between income and happiness must also be considered in a cultural context. It also appears however that increasing income makes more difference at varying levels of poverty perhaps because it relates to the meeting of basic needs. The first was a survey of americans and found that the amount of money people spent on gifts to others or gave to charity was positively associated with general happiness even when overall income.
In the easterlin paradox study of 1995 despite the growth in the income in the past decades people s self reported level of happiness and satisfaction didn t improve. For a double from 30k to 60k the relationship still holds but it tends to have far more variance. Adults who were in the top decile of.
In general this means that as a country s wealth increases from 10k to 20k per person it will likely slide up the happiness scale as well. As one ascends the income ladder it produces diminishing returns for happiness. Each country is an arrow on the grid and the location of the arrow tells us the corresponding combination of average income and average happiness.
The new study divided respondents into quintiles and deciles on the basis of income and looked at how they answered that question over several decades. Previous studies have found a correlation between money and happiness but the case western study used the data on individuals over time to demonstrate that income can cause a reduction in negative. The findings were published in the american psychological association journal emotion.
The findings show that on average the more income someone makes the happier they are.