What makes workers happy? Here we argue that pure ‘rank’ matters. It is currently believed that wellbeing is determined partly by an individual’s absolute wage (say, 30,000 dollars a year) and partly by the individual’s relative wage (say, 30,000 dollars compared to an average in the...

It is believed that the length of a person's life depends on a mixture of economic and social factors. Yet the relative importance of these is still debated. We provide evidence in this paper that marriage has a much more important (positive) effect on longevity than high income does. For men,...

The most fundamental idea in economics is that money makes people happy. This paper constructs a test. It studies longitudinal information on the psychological health and reported happiness of approximately 9,000 randomly chosen people. In the spirit of a natural experiment, the paper shows that...

Divorce is a leap in the dark. The paper investigates whether people who split up actually become happier. Using the British Household Panel Survey, we can observe an individual's level of psychological well-being in the years before and after divorce. Our results show that divorcing couples...

This paper studies workers’ lives in modern Britain. It uses longitudinal data to examine stress and job satisfaction through the decade of the 1990s. The results are disturbing. On both measures, the wellbeing of British public sector workers worsened sharply over the decade. The size of the...

One of the famous questions in social science is whether money makes people happy. We offer new evidence by using longitudinal data on a random sample of Britons who receive medium-sized lottery wins of between £1000 and £120,000 (that is, up to approximately U.S. $200,000). When compared to...

Divorce is a leap in the dark. This paper investigates whether people who split up actually become happier. Using the British Household Panel Survey, we are able to observe an individual’s level of psychological wellbeing in the years before and after divorce. Our results show that divorcing...

One of the famous questions in social science is whether money makes people happy. We offer new evidence by using longitudinal data on a random sample of Britons who receive medium-sized lottery wins of between £1000 and £120,000 (that is, up to approximately U.S. $200,000). When compared to...