The study by Daniel Kahneman and Angus Deaton examines the relationship between income and subjective well-being, specifically focusing on emotional well-being and life evaluation. Using data from the Gallup-Healthways Well-Being Index, they analyze over 450,000 responses to assess how income affects these two aspects of well-being. The findings suggest that while higher income significantly improves life evaluation, it does not enhance emotional well-being beyond an annual income of approximately $75,000. Emotional well-being, measured by the frequency and intensity of positive and negative emotions, plateaus at this income level. In contrast, life evaluation, assessed using Cantril's Self-Anchoring Scale, shows a steady rise with log income. The study also highlights that low income exacerbates emotional pain associated with misfortunes such as divorce, ill health, and loneliness. The authors conclude that while high income improves life satisfaction, it does not necessarily increase happiness, and low income is linked to both low life evaluation and low emotional well-being.The study by Daniel Kahneman and Angus Deaton examines the relationship between income and subjective well-being, specifically focusing on emotional well-being and life evaluation. Using data from the Gallup-Healthways Well-Being Index, they analyze over 450,000 responses to assess how income affects these two aspects of well-being. The findings suggest that while higher income significantly improves life evaluation, it does not enhance emotional well-being beyond an annual income of approximately $75,000. Emotional well-being, measured by the frequency and intensity of positive and negative emotions, plateaus at this income level. In contrast, life evaluation, assessed using Cantril's Self-Anchoring Scale, shows a steady rise with log income. The study also highlights that low income exacerbates emotional pain associated with misfortunes such as divorce, ill health, and loneliness. The authors conclude that while high income improves life satisfaction, it does not necessarily increase happiness, and low income is linked to both low life evaluation and low emotional well-being.