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Money buys happiness, just not a whole lot of it
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Happiness research has traditionally provided support for the hypothesis that income has a strong association with happiness. This paper argues that this association is generally over-stated due to a combination of data problems and inaccurate methods. The relation between income and happiness is re-examined utilizing a panel dataset consisting of a sample that is representative of the Dutch population. The main result from the fixed effects model show that income has a lower effect on happiness than was found in previous research. Further heterogeneity checks show that relationship status has the largest impact on happiness from income and that marginal happiness from income is similar across income levels.

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URN: urn:nbn:se:uu:diva-256030OAI: oai:DiVA.org:uu-256030DiVA: diva2:824342
Available from: 2015-06-22 Created: 2015-06-22 Last updated: 2015-06-22Bibliographically approved

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