Income and the sense of happiness in the light of empirical research

Abstract

Background: This paper examines the role of subjective well-being as a factor motivating people in the Aristotelian and popular economic perspectives. Both imply that at a deeper level, all human endeavours are intended to increase happiness, although the role of utility in decision-making should not be understated. Research objectives: The primary aim of the study was to determine whether and if so, what links exist between the income levels of the surveyed residents of Świętokrzyskie Voivodship (a province in south-central Poland) and their self-reported sense of happiness. Research design and methods: The theoretical part of the study draws on a critical literature review, including selected methods for measuring subjective well-being, whereas the empirical one employs a diagnostic survey based on a questionnaire as a research tool. To analyse the data, descriptive statistics were obtained and a correlation study was performed. Results: Empirical research reveals that respondents with higher incomes report a higher sense of happiness, but only up to PLN 3,000. Further income increases no longer result in proportional increases in perceived happiness. Conclusions: Awareness of the relationship between income and happiness can affect financial decision-making, including the motivation to ensure material security, which has a positive impact on the overall quality of life.