Money’s Impact on Well-being Disputes the $75,000 Plateau Theory
- A new research report finds that a significant raise provides boosts in happiness even at high household incomes of $500,000.
- Matt Killingsworth’s paper suggests there is no plateau for income and happiness beyond a certain salary threshold.
- Researchers emphasize that multiple factors influence human happiness, including relationships, job, and country.
A recent study by Matt Killingsworth, a senior fellow at the University of Pennsylvania’s Wharton School, challenges the notion that money stops making people happier once they reach a certain income level. The research shows that even high earners experience happiness gains from raises, similar to those at lower income tiers. Previous studies have demonstrated that richer individuals are generally happier, but Killingsworth’s paper argues against the idea that money has the most significant impact on happiness. Factors like relationships and job satisfaction also play a role in overall well-being.
Factuality Level: 8
Factuality Justification: The article is based on research conducted by Matt Killingsworth and other researchers, cites relevant data sources such as the Congressional Budget Office and Empower, and presents a balanced view of the relationship between money and happiness. It acknowledges that while money can contribute to happiness, it’s not the only factor and that there are individual experiences that may vary.
Noise Level: 7
Noise Justification: The article provides relevant information about the connection between money and happiness based on research findings and expert opinions. However, it could benefit from more in-depth analysis of the factors influencing happiness beyond income and include additional evidence to support its claims.
Public Companies: Empower ()
Key People: Matt Killingsworth (Senior Fellow at the University of Pennsylvania’s Wharton School)
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the relationship between income and happiness, with a focus on how higher incomes can still contribute to increased well-being even at high household incomes. It mentions different income levels across society but does not specifically impact financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Small
Affected Instruments: Stocks
www.wsj.com 
