Study finds limited link between happiness and pay

09/12/2010 | New York Times (tiered subscription model), The

A higher salary doesn't necessarily equal more happiness, according to a study from the Proceedings of the National Academy of Sciences. A survey of 450,000 Americans revealed the positive effects of compensation on day-to-day happiness end at a household income of $75,000 -- for most people. "Wanting money is not a recipe for disaster, but wanting money and not getting it -- that's a good recipe for disaster," said Daniel Kahneman, a professor emeritus of psychology at Princeton and one of the study's authors.

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