Year: 2008
Type: article
Abstract: The “Easterlin paradox” suggests that there is no link between a society’s economic development and its average level of happiness. We reassess this paradox, analyzing multiple rich datasets spanning many decades. Using recent data on a broader array of countries, we establish a clear positive link between average levels of subjective well-being and GDP per capita across countries, and find no evidence of a satiation point beyond which wealthier countries have no further increases in subjective well-being. We show that the estimated relationship is consistent across many datasets and is similar to that between subjective well-being and income observed within countries. Finally, examining the relationship between changes in subjective well-being and income over time within countries, we find economic growth associated with rising happiness. Together these findings indicate a clear role for absolute income and a more limited role for relative income comparisons in determining happiness.
DOI: 10.1353/eca.0.0001
Authors: Betsey Stevenson, Justin Wolfers
Language: English
Subfield: Social Psychology
Field: Psychology
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4250943512