#  Money Does Make You Happy →

April 16th, 2008 | In Worth Considering 

As Justin Wolfers explains the Easterlin paradox has long baffled happiness researchers. It’s components:

  1. Within a society, rich people tend to be much happier than poor people.
  2. But, rich societies tend not to be happier than poor societies (or not by much).
  3. As countries get richer, they do not get happier.

The trouble is, new data — collected by Betsey Stevenson and himself — suggests that these observations are, well, wrong, and should be replaced by these:

  1. Rich people are happier than poor people.
  2. Richer countries are happier than poorer countries.
  3. As countries get richer, they tend to get happier.

His post links to more information (mostly PDFs) on the topic, as well as this illistrative chart.