To test the common belief that people with high self-esteem are happier than those who think less of themselves, researchers from the University of California, Riverside, asked 621 retired employees of a large utility company, all between the ages of 51 and 95, to fill out questionnaires about what made them happy and what gave them self-worth. Surprisingly, the study found that self-esteem was not the best predictor of happiness. Instead, happy folk tended to feel optimistic and wanted to be around others. Also surprising was that the best predictor of high self-esteem was not happiness, but hope and the feeling that one's needs were fulfilled. The researchers speculate that people who are unhappy and yet have high self-esteem may feel that they are capable and talented but haven't achieved what they wanted to in life. For those who are happy despite low self-esteem, "the key may be their extraverted nature," lead author Sonja Lyubomirsky, Ph.D., suggests. "They are simply more social and outgoing, which bolsters their happiness but not their self-esteem."

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