To what extent does happiness depend on money?
This paper uses data from the European Social Survey to measure the importance one’s financial situation has on the level of happiness. Through a multivariate analysis we are able to observe how financial distress negatively affects the state of happiness of an individual. Nonetheless, our model also brings to light other factors, which bear a higher impact on happiness. The latter corresponds to what other researchers have found claiming that above a certain income level, money is no longer an important determinant. In Europe, at least, one’s satisfaction with national system appears to be more important than money itself.
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