Ah, yes. The mysteries. They are indeed hard to explain if the author is illiterate in Economics, like most people are (which isn't something to be ashamed of)
Fortunately for us, the mysteries are easily explained by taking a sophomore course in intermediate microeconomics and reading over just 1 lecture:
> More realistic case: labor supply curve bends back (substitution effect dominates at low wage rates and income effect dominates at high wage rates)
It turns out that most people start valuing things other than money, ONCE a certain level of wage has been reached. Other studies suggest that the level is somewhere around $70,000, with corrections for the cost of living. No mysteries here at all, and probably one of the more solved and trivial problems in Economics in general.
a very important point is that 70k point is probably very variable, but exists somewhere in everyone except for the truly exceptional billionaire types.
personally i always need a sports car because i'm a gearhead, so maybe mine is a bit higher, but it surely is there.
Ah, yes. The mysteries. They are indeed hard to explain if the author is illiterate in Economics, like most people are (which isn't something to be ashamed of)
Fortunately for us, the mysteries are easily explained by taking a sophomore course in intermediate microeconomics and reading over just 1 lecture:
http://mirceatrandafir.com/teaching/econ306/Chapter_05_6spp....
The important part:
> More realistic case: labor supply curve bends back (substitution effect dominates at low wage rates and income effect dominates at high wage rates)
It turns out that most people start valuing things other than money, ONCE a certain level of wage has been reached. Other studies suggest that the level is somewhere around $70,000, with corrections for the cost of living. No mysteries here at all, and probably one of the more solved and trivial problems in Economics in general.