According to a recent English study published on Nov. 18 in the journal Health Economics, Policy and Law, psychotherapy may be 32 times more cost-effective at improving well-being than receiving more money.  The study examined data from thousands of participants who responded to questions about their well-being.  Based on the data analysis, the increase in happiness garnered from a $1329 course of therapy is so large that it would require a $41,542 pay raise to achieve similar results (e.g. increases in happiness).

As quoted in the article, lead researcher Chris Boyce, from the University of Warwick, said: “We have shown that psychological therapy could be much more cost effective than financial compensation at alleviating psychological distress. This is not only important in courts of law, where huge financial awards are the default way in which pain and suffering are compensated, but has wider implications for public health and well-being.”

“Often the importance of money for improving our well-being and bringing greater happiness is vastly over-valued in our societies. The benefits of having good mental health, on the other hand, are often not fully appreciated and people do not realize the powerful effect that psychological therapy, such as non-directive counselling, can have on improving our well-being.”

I should note that I am summarizing the results as published in news outlets.  I do not have access to the actual journal article [irony: the journal requires a subscription, which costs too much for a single blog article], and therefore cannot evaluate the study's methodology or ascertain what types of therapy were utilized.  Being able to review this information is an important part of critically examining the results.

Nonetheless, I find the basic implications striking.  The results support my belief ascertained from clinical work that money does not lead to happiness.  Rather, it seems to suggest that the insight, reflection, self-awareness, and growth garnered from the psychotherapy process helps to increase individuals' happiness and well-being.  This is something I see repeatedly in the psychotherapy work that I do, and it is refreshing to see a study that supports this.

Journal Reference:

1.Boyce et al. Money or mental health: the cost of alleviatingpsychological distress with monetary compensation versus psychologicaltherapy. Health Economics Policy and Law, 2009