Eugenio Proto, Aldo Rustichini, Saturday, January 11, 2014

The link between higher national income and higher national life satisfaction is critical to economic policymaking. This column presents new evidence that the connection is hump-shaped. There is a clear, positive relation in the poorer nations and regions, but it flattens out at around $30,000–$35,000, and then turns negative.

Justin Wolfers, Betsey Stevenson, Daniel W Sacks, Monday, October 11, 2010

Does money buy happiness? Discussion Paper 8048 examines the relationship between subjective well-being and income along three dimensions: between individuals in the same country, between other countries, and during a country's growth. In each case higher income correlates with higher reported levels of subjective well-being. Higher income, the authors conclude, does in fact make people happier with their lives.