BEIJING, Aug 15 -- While it seems true that money can buy you happiness, researchers say relative income is more prevalent in determining one's happiness than absolute income.

    Prof Glenn Firebaugh, a sociologist researcher from Pennsylvania State University and graduate student Laura Tach from Harvard University studied a representative sample of nearly 20,000 Americans.

    Their findings revealed that while both absolute and relative income are important, relative is more prevalent in determining one's happiness.

    One alternative strategy would be to "hang out" with poorer people, according to the study.

    "If income effects are entirely relative, then continued income growth in rich countries today is relevant to how happy people are on the whole," Dr. Firebaugh says. "Rather than promoting overall happiness, continued income growth could promote an ongoing consumption race where individuals consume more and more just to maintain a constant level of happiness."

    Using the 1972-2002 General Social Survey, researchers compared the age, total family income and general happiness of those between ages 20 and 64.

    While they did find income was important to one's happiness, physical health was the best single predictor of happiness.

    (Agencies)