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High income improves evaluation of life but not emotional well-being (with Angus Deaton)

Daniel Kahneman · 7 Sept 2010

Read the paper on pmc.ncbi.nlm.nih.gov ↗

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  1. Low income exacerbates the emotional pain associated with such misfortunes as divorce, ill health, and being alone.
  2. We conclude that high income buys life satisfaction but not happiness, and that low income is associated both with low life evaluation and low emotional well-being.
  3. What the data suggest is that above a certain level of stable income, individuals’ emotional well-being is constrained by other factors in their temperament and life circumstances.

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