RICHER, HAPPIER? A CRITICAL REVIEW OF WEALTH AND HAPPINESS
DOI:
https://doi.org/10.14456/tmsr.2025.2Keywords:
Wealth, Happiness, Well-Being, Inequality, Critical ReviewAbstract
Does wealth guarantee happiness? This critical review, synthesizing research from 2015 to 2024, challenges the assumption by exploring the complex relationship between wealth and well-being. Drawing on evidence from Europe and Asia, we demonstrate that the impact of wealth is far from straightforward, heavily influenced by context, inequality, and institutional factors. We reveal that while absolute income is crucial for alleviating material deprivation, relative income and societal inequality can overshadow these gains. Moreover, institutional quality, social capital, and cultural values act as critical moderators. Highlighting key methodological considerations, this review offers an integrated framework and actionable insights for policymakers and business leaders, emphasizing that sustainable happiness requires equitable policies, trustworthy institutions, and empowerment initiatives. We conclude with targeted recommendations for future research to further elucidate the nexus between wealth and happiness across diverse societal contexts.
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