There is one very good reason to take a job without an increase in pay: happiness. That’s a subject big enough for another essay, and something that should be carefully evaluated separately from the economics.
Just like your job probably has the largest impact on your financial situation, it has one of the largest impacts on your overall happiness as well. You’ll spend about a third of every year at work, so it makes sense to have a job that aligns with your interests and gives you a sense of accomplishment.
One of my worst jobs was a great fit for my skills. The company had a mission that could have had a large positive impact its potential customer base. Unfortunately, the folks in charge at the company were focused on the product instead of the mission. The product was a challenge, but it was developing fine. The biggest challenges, like funding and developing a market, were left up to fate. I hated the feeling of building something really great, but not believing that the company would be successful either financially or at achieving its mission. The situation made me miserable.
The situation of a job can make you more or less happy too. A bad boss can make your life miserable. Nothing has motivated me to leave a job faster than a boss that I didn’t like. Even the work environment can harm you. This article mentions that job strain had a similar impact on health as smoking! How much of a raise would you need to persuade you to take up smoking?
Your job can have an indirect impact on your happiness as well. This study shows how a daily commute impacts happiness. Take particular note that the study found that higher pay didn’t make up for a poor commute.
I don’t think there is anything wrong with accepting a job offer that compensates you less if it will make you happier. Likewise, it makes sense to pass up an increase in compensation to stay at work that will make you happier.
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