Do Higher Minimum Wages Make People Happier?

The relationship is dramatic and clear: As the minimum wage increases, people are in general more satisfied with their lives. To be sure that this result is not an artifact of failing to consider alternative explanations, we note that the same positive relationship continues to obtain if we add statistical controls for other factors, including as a country’s level of economic development (GDP per capita, again in purchasing power parity), which may affect both its level of happiness and the level of its minimum wage, and (simultaneously) short-term economic performance (the unemployment rate). Data are from the Penn World Table version 7.0 and the OECD Main Economic Indicators (2012), respectively. With these controls, the minimum wage is still positively associated with satisfaction in statistically significant terms.

http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/05/14/does-a-higher-minimum-wage-make-people-happier/

One thought on “Do Higher Minimum Wages Make People Happier?

  1. “As the minimum wage increases, people are in general more satisfied with their lives.”

    I’m not. Raises I’ve earned are going to be completely absorbed by 2016’s wage hike, and new hires are going to be making more than me because my employer starts people at above the minimum wage.

    Speaking of which: Is $10/hr not enough for you guys? I mean, c’mon… You keep citing this study from San Jose as ‘proof’ or whatever, but Eureka is NOT San Jose. You MUST see that distinction, don’t you?

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