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While money can’t buy happiness, a new study finds it can help control some of the costs.
In a study conducted by researchers from Princeton University, two economists, Todd N. Schelling and Raj Chetty, have found that a person who is worth six times more than his friends in education achieves happiness levels more than 2.5 times higher than his peers. It’s important to note, though, that this doesn’t mean that a person should be willing to give up work and savings — as happy people tend to spend and save at a higher rate.
An exclusive report on the paper will appear in the March/April issue of the journal of Public Choice.
Researchers used data on more than 8 million households from the U.S. Census to study the impact of social capital, or friendships and family relationships on a person’s well-being. The authors found that a person with an index of social capital 30 percent higher than his or her peers achieved levels of happiness about 14 percent higher than his or her peers on average.
Why were so many wealthy people unhappy? While some of the wealthy people were doubtless driven by the desire for money to buy happiness, others simply weren’t as sociable as other people. These studies also show the importance of a person’s own happiness in achieving high levels of personal success.
Other benefits of social capital on well-being include the fact that those in high-social-capital groups have better access to health care, better nutritional resources, and more opportunities to learn and learn about the broader world. (This is hardly surprising, but it does add a new dimension to the term “networking” that has mostly been used only in the business context.)
Study co-author Raj Chetty also told the New York Times that as spending on education became more commonplace in the U.S., some wealthy people began to read out of the same book, but not to the same extent as everyone else
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