(Picture: Jessica Kourkounis/Getty Images
(Picture: Jessica Kourkounis/Getty Images

Angus Deaton, a Princeton economist who won the 2015 Nobel Prize in economics on 12 October, in part won the accolade for his work on the intersection between wealth and happiness.

According to Deaton, there is an optimum salary for happiness.

His 2010 study with Daniel Kahneman says that there's a "happiness plateau" above an annual salary of $75,000 or approximately £49,000.

The research contends that above this figure the "everyday contentment" or “frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one's life pleasant or unpleasant” don’t increase.

What does continuously increase with salary, however, is "life assessment" or "the thoughts that people have about their life when they think about it".

Or as he put it himself in an interview with the Wall Street Journal:

Giving people more income beyond $75,000 is not going to do much for their daily mood … but it is going to make them feel they have a better life.

(H/T Business Insider)

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