New formula for life-satisfaction

http://www.eurekalert.org/pub_releases/2015-10/uob-nff100115.php

Public Release: 1-Oct-2015
New formula for life-satisfaction
University of Bonn: Lasting increases in income improve well-being -- extra work makes people more dissatisfied
University of Bonn

In a new study, mathematical economist Prof. Dr. Christian Bayer, from the Hausdorff Center for Mathematics at the University of Bonn, has demonstrated a connection between long-term income increases and personal satisfaction. Overtime also affects personal levels of happiness - but in a negative way. His findings will be presented in the latest issue of the "American Economic Journal".

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Their findings were clear: more money does make people happier - but only if there is a long-term increase in income. A temporary increase does not have any noticeable effect on an employee's level of happiness, even if it is a large increase. By contrast, a permanent increase in income results in a significant rise in well-being, even if the raise is small.

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The researchers identified a second important way in which professional life influences personal happiness: the number of hours that employees work. "Those who consistently have to work more become less happy," says Prof. Bayer, an instructor and researcher at the Institute for Macroeconomics and Econometrics at the University of Bonn. "This finding contradicts many other studies that conclude people are more satisfied when they have any job than none at all." The new study suggests that the unemployed suffer from the lack of income not the lack of employment per se.

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