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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies

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Published on: August 25, 2023

Income and emotional well-being: A conflict resolved.

Matthew A Killingsworth¹, Daniel Kahneman², Barbara Mellers¹

¹University of Pennsylvania, Philadelphia, PA 19104.

Proceedings of the National Academy of Sciences of the United States of America

|March 1, 2023

Summary

This summary is machine-generated.

Higher income consistently increases happiness, especially for happier individuals. A reanalysis revealed that previous studies overstated income

Keywords:

Well-being experience sampling happiness income income satiation

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Area of Science:

Psychology
Economics
Behavioral Science

Background:

Conflicting findings exist on the relationship between income and happiness.
Kahneman and Deaton (2010) reported a happiness plateau at higher incomes.
Killingsworth (2021) found a consistent linear-log increase in happiness with income.

Purpose of the Study:

To reconcile contradictory findings on income and happiness.
To investigate the role of income in shaping the happiness distribution.
To identify methodological reasons for discrepancies in previous research.

Main Methods:

Adversarial collaboration between researchers with opposing views.
Reanalysis of existing experience sampling data (Killingsworth, 2021).
Examination of dichotomous happiness measures (Kahneman and Deaton, 2010).

Main Results:

A flattening pattern in happiness was observed only for the least happy individuals.
Happiness increases steadily, and even accelerates, with income among happier individuals.
Nonlinearities in the happiness distribution explain the overall linear-log relationship.

Conclusions:

Previous studies may have overstated the happiness plateau due to ceiling effects and focusing on unhappiness.
Income's impact on happiness is not uniform across the entire population.
Methodological choices significantly influence the observed relationship between income and happiness.