Would You Be Happier If You Were Richer? A Focusing Illusion
National Bureau of Economic Research · Princeton University · +3 more institutions
Abstract
The belief that high income is associated with good mood is widespread but mostly illusory. People with above-average income are relatively satisfied with their lives but are barely happier than others in moment-to-moment experience, tend to be more tense, and do not spend more time in particularly enjoyable activities. Moreover, the effect of income on life satisfaction seems to be transient. We argue that people exaggerate the contribution of income to happiness because they focus, in part, on conventional achievements when evaluating their life or the lives of others.
Citation impact
- FWCI
- 67.39
- Percentile
- 100%
- References
- 24
Authors
5- DKDaniel KahnemanCorresponding
National Bureau of Economic Research, Princeton University, University of Michigan, University of California San Diego, Stony Brook University
- ABAlan B. Krueger
National Bureau of Economic Research, Princeton University, University of Michigan, University of California San Diego, Stony Brook University
- DSDavid Schkade
National Bureau of Economic Research, Princeton University, University of Michigan, University of California San Diego, Stony Brook University
- NSNorbert Schwarz
National Bureau of Economic Research, Princeton University, University of Michigan, University of California San Diego, Stony Brook University
- AAArthur A. Stone
National Bureau of Economic Research, Princeton University, University of Michigan, University of California San Diego, Stony Brook University
Topics & keywords
- Happiness
- Illusion
- Psychology
- Life satisfaction
- Mood
- Social psychology
- Focus (optics)
- Subjective well-being
- No poverty