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Money and happiness : rank of income, not income, affects life satisfaction

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Boyce, Christopher J., Brown, G. D. A. (Gordon D. A.) and Moore, Simon C.. (2010) Money and happiness : rank of income, not income, affects life satisfaction. Psychological Science, Vol.21 (No.4). pp. 471-475. ISSN 0956-7976

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Official URL: http://dx.doi.org/10.1177/0956797610362671

Abstract

Does money buy happiness, or does happiness come indirectly from the higher rank in society that money brings? Here we test a rank hypothesis, according to which people gain utility from the ranked position of their income within a comparison group. The rank hypothesis contrasts with traditional reference income hypotheses, which suggest utility from income depends on comparison to a social group reference norm. We find that the ranked position of an individual’s income predicts general life satisfaction, while absolute income and reference income have no effect. Furthermore, individuals weight upward comparisons more than downward comparisons. According to the rank hypothesis, income and utility are not directly linked: Increasing an individual’s income will only increase their utility if ranked position also increases and will necessarily reduce the utility of others who will lose rank.

Item Type:	Journal Article
Subjects:	H Social Sciences > HT Communities. Classes. Races B Philosophy. Psychology. Religion > BF Psychology
Divisions:	Other > Institute of Advanced Study Faculty of Science > Psychology
Library of Congress Subject Headings (LCSH):	Wealth -- Psychological aspects, Happiness, Quality of life, Social classes -- Research
Journal or Publication Title:	Psychological Science
Publisher:	Sage
ISSN:	0956-7976
Date:	April 2010
Volume:	Vol.21
Number:	No.4
Page Range:	pp. 471-475
Identification Number:	10.1177/0956797610362671
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Funder:	Economic and Social Research Council (Great Britain) (ESRC)
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URI:	http://wrap.warwick.ac.uk/id/eprint/2554