SOCIOECONOMICS OF HAPPINESS

This line of research investigates how socioeconomic factors shape emotional well-being. One project found that income reliably predicts lower daily sadness, but does not necessarily translate into higher daily happiness—suggesting that money can buffer negative emotions yet provides only limited boosts to positive ones. Another set of studies explored progressive taxation and income inequality, demonstrating that higher tax progressivity is associated with reduced inequality and greater happiness for lower earners, without significantly diminishing well-being among the wealthiest individuals. Finally, work on the pains and pleasures of parenting highlights the complex role of finances in family life: although financial constraints can heighten stress, a sense of meaning, strong social support, and positive emotions can offset the pressures of parenthood. Together, these findings underscore how money influences life satisfaction in nuanced ways, buffering certain forms of distress while not guaranteeing greater joy.