You're understanding the actual data quite well as it turns out. Moving from $40k -> $50k is a much bigger gain on the happiness scales since it is a larger % i

You're understanding the actual data quite well as it turns out. Moving from $40k -> $50k is a much bigger gain on the happiness scales since it is a larger % increase. Moving $120k -> $130k is much smaller relatively, even though it's still $10k. As for getting larger raises, many jobs you get raises based on a percentage of your current salary. So if you get a 5% year-over-year raise and your base salary is $120k, you're getting a similar happiness boost as the 5% year-over-year raise of someone making $40k base salary. But you're getting way more in terms of net actual dollars.