Understanding money's limits: People's beliefs about the income: Happiness correlation.

This is a member only resource

Become a Member » Log In »
Understanding money's limits: People's beliefs about the income: Happiness correlation.
The Journal of Positive Psychology

It is claimed that the correlation between income and happiness is considerably weaker than people expect and recent research supports that contention. However an important lesson from judgment and decision-making research is that judgments are constructed in response to the prevailing context leaving open the possibility that some elicitation procedures may reveal accurate intuitions about income and happiness. We examined whether this is so. Study 1 participants ranked a set of empirical relationships according to the strength of correlation and we examined whether they ranked the income?happiness link where it actually falls in the set. In Studies 2 and 3 participants estimated the probability that someone with a higher income than another is also the happier of the two. The estimates of the participants were then compared to the actual probability based on the documented income?happiness relationship. Results indicate that using these elicitation procedures people have an accurate understanding of the relationship between income and happiness.

Become a Member

The IOC is a global community of coaches.

Join

Contact Us

  • Institute of Coaching
  • McLean Hospital
  • 115 Mill Street, Mail Stop 314
  • Belmont, MA 02478
  • info@instituteofcoaching.org