Can Money Buy Happiness? Evidence for European Countries

Gabriela Mihaela Muresan (), Cristina Ciumas () and Monica Violeta Achim ()
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Gabriela Mihaela Muresan: Babes Bolyai University
Cristina Ciumas: Babes Bolyai University
Monica Violeta Achim: Babes Bolyai University

Applied Research in Quality of Life, 2020, vol. 15, issue 4, No 2, 953-970

Abstract: Abstract This research comes to empirical investigate the influence of income on the level of happiness. Can money buy happiness? It’s one of the most frequently disputed and researched questions of all time. At first sight, it seems easy to assign a simple answer: yes or no, but the correct answer is more difficult than these. We start from the assumption that people need to be happy but also need financial resources to feel safe. We used a panel analysis on a sample of 26 European countries over the period 2008–2016. We found that happiness increases with individual income until a threshold of 27,913 Euro per year (rounded to 35,000 USD) in European countries. Also, we found that culture plays an essential role in the perception of happiness. Moreover, our results indicate that a lower power distance, a high individualism, a low level of uncertainty avoidance and a high indulgence statistically increase the level of happiness.

Keywords: Culture; Happiness; Income; Panel analysis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s11482-019-09714-3

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