Does Income hike make people happy?
We usually think that our rising income also satisfies our life but this may not be the case with several people.
According to researchers, what effects is when income is lost and is only important for people who are highly reliable and hard working.
The research in life satisfaction and income changes in more than 18,000 adults over a nine-year period, exposed that the income change is only important when people with specific personality characteristics experience an income loss.According to them, continually increasing the income is not an essential factor for attaining greater happiness for most people living in developed countries.
“Instead, we should aim for financial stability to achieve greater happiness while protecting those individuals who experience negative income shocks,” said Christopher Boyce of the behavioural science centre at the University of Stirling in Britain.
The study, including two separate groups from Germany and Britain, asked participants annually about their income level and how they satisfy themselves. Participants answered the questions pertaining to their personality at the initial time of the study. Results reported that regardless of personality, income increases did not affect life satisfaction.
When people lost income, there was a reduction in their life satisfaction.
This was far greater for those who reported themselves as being reliable, namely they were thorough in their attitudes towards life and work, energetic and efficient in how they did things.
The study accounted for changing circumstances such as entering or leaving work and changes to health and housekeeping.People that were only even slightly honest, less income had a negative impact, minimum two and a half times greater than less reliable people.