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Recent research has begun to distinguish two aspects of subjective well-being.

Emotional well-being (= short-term) refers to the emotional quality of an individual’s everyday experience—the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one’s life pleasant or unpleasant.

Life evaluation (= longer-term) refers to the thoughts that people have about their life when they think about it. Emotional well-being also rises with log income, but there is no further progress beyond an annual income of ~$75,000.

Source: Daniel Kahneman and Angus Deaton , Proceedings of the National Academy of Sciences of the United States of America (2013)

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