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Psychology

One study said happiness peaked at $75,000 in income. Now, economists say it’s higher—by a lot

One study said happiness peaked at $75,000 in income. Now, economists say it’s higher—by a lot

A study co-authored by Matthew Killingsworth of the Wharton School, PIK Professor Barbara Mellers, and a team from Princeton found that happiness improves with higher earnings, up to $500,000 a year, except for those who were “rich and miserable” for other reasons.

Does more money correlate with greater happiness?
Illustration of a person holding a brief case bounding up stacks of money. Dollar signs float all around and one appears in a large circular coin at the bottom right.

Image: iStock/uniquepixel

Does more money correlate with greater happiness?

Reconciling previously contradictory results, researchers from Penn and Princeton find a steady association between larger incomes and greater happiness for most people but a rise and plateau for an unhappy minority.

Michele W. Berger