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Income and Mental Well-Being: Personality Traits as Moderators

Author

Listed:
  • Susanne M. Syrén

    (University of Jyväskylä)

  • Katja Kokko

    (University of Jyväskylä)

  • Lea Pulkkinen

    (University of Jyväskylä)

  • Jaakko Pehkonen

    (University of Jyväskylä)

Abstract

Using data from the participants of the Jyväskylä Longitudinal Study of Personality and Social Development (JYLS) at ages 42 and 50 (N = 326), this study provides empirical evidence of the relation between income and mental well-being and of the possible role of personality traits in modifying this relation. The relationships were analyzed using pooled ordinary least squares (OLS; bi- and multivariate settings) and fixed effects estimations (FE; multivariate settings). Positive bivariate associations were found between gross monthly income and the sum score of mental well-being and its separate dimensions (emotional, psychological, and social well-being and the absence of depression) as well as between experienced household finances and the sum score of mental well-being and its separate dimensions (except for social well-being). The multivariate OLS analyses detected positive relationships between gross monthly income and the absence of depression and between experienced household finances and mental well-being, along with one of its dimensions, i.e., emotional well-being. Further, the marginal utility of income appeared to depend on personality traits (FE): agreeableness and extraversion negatively moderated the gross monthly income–emotional well-being relationship, while openness positively moderated this relationship. In addition to emotional well-being, extraversion negatively moderated the relationship between gross monthly income and general mental well-being, and neuroticism negatively moderated the association between gross monthly income and social well-being.

Suggested Citation

  • Susanne M. Syrén & Katja Kokko & Lea Pulkkinen & Jaakko Pehkonen, 2020. "Income and Mental Well-Being: Personality Traits as Moderators," Journal of Happiness Studies, Springer, vol. 21(2), pages 547-571, February.
    • Handle: RePEc:spr:jhappi:v:21:y:2020:i:2:d:10.1007_s10902-019-00076-z
    DOI: 10.1007/s10902-019-00076-z
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    3. Ayaita, Adam, 2022. "Does Money Change Who You Are? Quasi-Experimental Evidence on the Effects of Wage Increases on Personality," EconStor Preprints 256931, ZBW - Leibniz Information Centre for Economics.

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