The More Income, the More Happiness. How Far?

Abstract

The purpose of this article is to identify the level of income in which countries achieve the highest level of happiness, as well as to identify which variables affect happiness according to the level of income of the countries. The methodological approach is based on the Cluster analysis, using the average k method, and the estimation of an econometric model by ordinary least squares. The results reveal that happiness increases with income, but up to a certain amount, according to the per capita income of the countries.