Money doesn’t buy happiness if you need a second job to have it

While being wealthier is often perceived as improving people’s wellbeing and happiness, research from The University of Queensland has found that is not always the case.

Dr Isaac Koomson from UQ’s Centre for the Business and Economics of Health said people working more than 1 job - known as moonlighters - were less satisfied with life despite having more money.

“When asked ‘How satisfied are you with your life?’ in a survey, moonlighters’ subjective wellbeing score was about 30 per cent less than the average working Australian,” Dr Koomson said.

“When it comes to people’s health, we can assume increasing your income helps cover expenses, which may in turn reduce mental stress.

“But our analysis showed reduced quality time with children and increased time stress were leading to significant reductions in wellbeing.”

Men were less satisfied with their lives than women working a second job, with those in high socioeconomic city areas self-reporting the greatest impact on their wellbeing.

Dr Koomson said the finding was initially surprising but made sense.

“Higher income earners and those in higher socioeconomic areas face higher living costs including housing, schooling, transport and lifestyle expectations,” Dr Koomson said.

“Working a second job despite already having a relatively good income indicates financial strain, leading to more stress, anxiety and lower subjective wellbeing.

“Despite their lives looking impressive from the outside, they were less satisfied with their lives than low-income earners working a second job to meet universal needs like housing and food.”

A million moonlighters

More than 1 million Australians work more than 1 job and the number is growing as the cost of living continues to rise.

Moonlighting is mostly undertaken by women aged 20-24 and community and personal service workers, according to the Australian Bureau of Statistics.

Dr Koomson said while fewer social connections and reduced free time negatively impacted those working a second job, moonlighting did have positive impacts for some.

“It serves as a pathway for skill development, career growth, satisfaction, and personal interest,” Dr Koomson said.

“Second jobs may increase satisfaction, help develop skills and enable entrepreneurship.

“Evidence from the United Kingdom shows moonlighters are more likely to become self-employed or transition into higher-paying roles.”

Dr Koomson said more research was needed to understand Australian moonlighters to ensure there was appropriate support and advice available for those struggling.

“Moonlighting rates continue to rise but little is known about its implications on the subjective wellbeing of Australians,” Dr Koomson said.

“Understanding the net dollar value of additional hours spent working, when considering the multiple components of wellbeing, could help workers make informed decisions about the necessity of earning extra income.”

The study used data extracted from the Household, Income and Labour Dynamics in Australia (HILDA) survey.

The co-authors of this publication are Lauren Ball and Amy Kirkegaard from UQ’s Centre for Community Health and Wellbeing.

The research was published in Social Science and Medicine.