Despite the benefits of social activity on happiness, humans still spend over one third of their time by themselves―sleeping. The effect of sleep quality on happiness as well as its underlying mechanism are examined in this study. Based on previous findings on the role of sleep in consolidation of memories, it was hypothesized that a good sleep would promote happiness by increasing the likelihood of recalling everyday episodes in a positively biased manner. In Study 1, regardless of one’s demographic variables, social variables, and economic status, sleep quality was positively related to life satisfaction. To examine the causal direction of this effect, participants were asked to complete a survey twice with different time intervals. Controlling for baseline variables, sleep quality during previous two weeks (Study 2) or previous day (Study 3) significantly predicted the participants’ life satisfaction. Moreover, this relationship was partially mediated by a positive memory bias (Study 3). This study opens interesting questions on a relatively unexamined nonsocial predictor of happiness, sleep quality.
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