“This study addressed a paradox that economists have talked about for a long time - that increases in income don’t tend to lead to big increases in happiness,” said Norton.
The results were published last month in the journal Science. Together they showed that people are happier when they spend money on others versus on themselves.
Spent money on others series#
Michael Norton, assistant professor of business administration in the marketing unit at the Harvard Business School (HBS), conducted a series of studies with his colleagues Elizabeth Dunn and Lara Aknin at the University of British Columbia (UBC). And while the purchase of material possessions can offer a temporary lift, the effects of a new watch, car, or dress, studies show, are almost always short-lived.īut new research by one Harvard scholar implies that happiness can be found by spending money on others. Studies suggest that more money can lead to a significant bump in positive outlook when it brings people out of poverty, but when simply taking a person up a pay grade, there’s often only a minor change in attitude. But when it comes to where to look for it, the instructions are less than clear.įor years researchers, from psychologists to economists, have examined whether there is a direct connection between one’s financial and emotional wealth. As anyone who has read the Declaration of Independence knows, the right to the pursuit of happiness is part of the nation’s founding creed.