Understanding the Role of Income in Personal Happiness: A Comprehensive PSM Analysis in the United States

Abstract

This study examines the relationship between income and individual happiness in the United States using propensity score matching (PSM) analysis. Results reveal that income has a significant impact on individual happiness, with higher income levels associated with increased happiness. The research uses the General Social Survey (GSS) 2022, which marks the beginning of a shift to a mixed-mode survey, incorporating the delivery of both face-to-face and online questions. Employing the general principle of core hypotheses, the analysis aims to understand the causal relationship between income and happiness. The results suggest that improving income could be an effective strategy for increasing individuals’ levels of happiness. The study underlines the importance of considering income as a factor that promotes individual well-being and happiness.