The relationship between money and happiness. The link between happiness and income is fraying.
Short s analysis found that if you live in a place like hawaii where the cost of living is relatively high a household needs to make 122 175 per year before some extra cash doesn t really translate into more happiness.
Income vs happiness graph. Towards the happiness. Of 8 291 on a modest income of. Happiness is the mean life satisfaction rating a score out of 10 for 35 50 year olds to broadly control for career stage and was taken from the annual population survey 2011 2013.
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. Rising income it turns out produces greater happiness until you get to around 75 000. In mississippi by comparison the threshold at which more money stops making you happier is a lot lower.
There was another fascinating chart inside the study where researchers plotted income against happiness for the top 25 most populous countries. After that there are diminishing returns with more income leading to little or no gain in real happiness. Today s chart looks at the relationship between gdp per capita ppp and the self reported levels of happiness of each country.
Salary vs happiness all of the data used in this piece has been sourced from the cabinet office s wellbeing and policy report. You ll see that in every single country happiness. In the endless debate on whether money equals happiness a new salary vs happiness chart reveals that it doesn t always pay.
One well publicized study last year put the optimal income for happiness at around 75 000. A survey of 43 countries published on october 30th by the pew research centre of washington dc shows that people in emerging markets are within. 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.
Sources for data are the world bank and the world happiness report 2017.