Reference no: EM133396064

Can Money Buy Happiness?

Comparisons across countries are difficult because there are likely to be many other factors that explain satisfaction besides income (e.g., health, climate, political environment, human rights, etc.). Interestingly, a recent survey of 136,000 individuals over 132 countries shows that the United States, which had the highest GDP per capita, was ranked 16th overall in happiness. The number 1 rated country was Denmark. Generally, countries in Northern Europe and English-speaking countries did well overall, as did a number of Latin American countries. However, South Korea and Russia were not rated as high as their incomes would predict. Does location affect feelings of well-being within the United States? The answer is apparently yes, with the top-ranked states (in order) being Utah, Hawaii, Wyoming, and Colorado, all west of the Mississippi River. (The lowest four, in reverse order, were West Virginia, Kentucky, Mississippi, and Ohio, all east of the Mississippi.) Moreover, it is possible that the relationship between income and satisfaction goes two ways: Although higher incomes generate more satisfaction, greater satisfaction offers greater motivation for individuals to work hard and generate higher incomes. Interestingly, even when studies account for other factors, the positive relationship between income and satisfaction remains.