The relationship between how much money a household makes and how happy people are is complex. While overall income has gone up, happiness levels have stayed the same in many Western countries. People with higher incomes tend to be happier, but there's a limit to how much more happiness money can bring. This difference between countries and individuals is called the Easterlin Paradox. By using a multilevel model approach, researchers found that 20.4% of happiness levels are influenced by the country you live in, while 79.4% is down to individual factors. Income inequality in a country can affect how much money matters for happiness. Overall, household income does play a role in how satisfied people are with their lives in most countries.