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The Easterlin paradox worldwide

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  • Matthias Opfinger

Abstract

The Easterlin paradox states that, although richer people report higher levels of well-being within one country, no such relationship exists across countries or over time. Several authors disagree and claim a robust positive relationship. A percentage increase of income always leads to higher well-being. This article reassesses the relationship, but analyses regional differences. I find that the positive relationship is strong in Eastern Europe, the Middle East and North African countries and Latin America. The relationship is not significant in Western Europe and Asia. In North America/Oceania and Sub-Saharan Africa, the marginal effect even becomes negative. Materialistic attitudes or the degree of collectivism may serve as explanations for the findings.

Suggested Citation

  • Matthias Opfinger, 2016. "The Easterlin paradox worldwide," Applied Economics Letters, Taylor & Francis Journals, vol. 23(2), pages 85-88, February.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:2:p:85-88
    DOI: 10.1080/13504851.2015.1051650
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    Cited by:

    1. Martijn Burger & Martijn Hendriks & Elena Ianchovichina, 2022. "Happy but Unequal: Differences in Subjective Well-Being across Individuals and Space in Colombia," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(3), pages 1343-1387, June.
    2. Kaiser, Caspar F. & Vendrik, Maarten C.M., 2018. "Different Versions of the Easterlin Paradox: New Evidence for European Countries," IZA Discussion Papers 11994, Institute of Labor Economics (IZA).
    3. Yew-Kwang Ng, 2016. "Welfare-Reducing Growth And Cost-Benefit Analysis: Essay In Memory Of E.J. Mishan," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-9, June.
    4. Burger,Martijn & Hendriks,Martijn & Ianchovichina,Elena, 2022. "Anatomy of Brazil’s Subjective Well-Being : A Tale of Growing Discontent and Polarization in the 2010s," Policy Research Working Paper Series 9924, The World Bank.

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