Are people happier the more money they earn? A well-known study by psychologist Daniel Kahneman—winner of the 2002 Nobel Prize in Economics—and economist Angus Deaton, published in 2010, noted that happiness increased in tandem with income until it plateaued at US$60,000 and US$90,000 per year, after which the effects began to diminish.

These findings were contradicted in a new study (https://www.pnas.org/doi/10.1073/pnas.2208661120) conducted by Kahneman himself and doctoral student and software expert Matthew Killingsworth, who, after collecting data from more than 33,000 Americans through an app developed by Killingsworth, found that this plateau no longer existed, except for the 20% of respondents who reported being less happy, for whom the limit is reached at an annual income of $100,000.

For the rest of the study participants, more money means more happiness, and for the happiest 30%, the happiness index rises sharply once annual income exceeds US$100,000. The relationship between greater happiness and higher income holds up to $500,000 annually, beyond which there is no conclusive data. However, the authors emphasize that the emotional impact of earning more money is small compared to other factors, including something as simple as having two days off at the end of the week.