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Income, Aging, Health and Wellbeing Around the World: Evidence from the Gallup World Poll

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Angus Deaton

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Abstract

During 2006, the Gallup Organization conducted a World Poll that used an identical questionnaire for national samples of adults from 132 countries. I analyze the data on life satisfaction (happiness) and on health satisfaction and look at their relationships with national income, age, and life-expectancy. Average happiness is strongly related to per capita national income; each doubling of income is associated with a near one point increase in life satisfaction on a scale from 0 to 10. Unlike most previous findings, the effect holds across the range of international incomes; if anything, it is slightly stronger among rich countries. Conditional on national income, recent economic growth makes people unhappier, improvements in life-expectancy make them happier, but life-expectancy itself has little effect. Age has an internationally inconsistent relationship with happiness. National income moderates the effects of aging on self-reported health, and the decline in health satisfaction and rise in disability with age are much stronger in poor countries than in rich countries. In line with earlier findings, people in much of Eastern Europe and in the countries of the former Soviet Union are particularly unhappy and particularly dissatisfied with their health, and older people in those countries are much less satisfied with their lives and with their health than are younger people. HIV prevalence in Africa has little effect on Africans' life or health satisfaction; the fraction of Kenyans who are satisfied with their personal health is the same as the fraction of Britons and higher than the fraction of Americans. The US ranks 81st out of 115 countries in the fraction of people who have confidence in their healthcare system, and has a lower score than countries such as India, Iran, Malawi, or Sierra Leone. While the strong relationship between life-satisfaction and income gives some credence to the measures, as do the low levels of life and health satisfaction in Eastern Europe and the countries of the former Soviet Union, the lack of correlations between life and health satisfaction and health measures shows that happiness (or self-reported health) measures cannot be regarded as useful summary indicators of human welfare in international comparisons.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13317.

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Date of creation: Aug 2007
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Handle: RePEc:nbr:nberwo:13317

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Find related papers by JEL classification:
I1 - Health, Education, and Welfare - - Health
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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  2. Mariana Gerstenbluth & Maximo Rossi, 2009. "¿Son más felices las personas saludables? La evidencia de Chile y Uruguay," Documentos de Trabajo (working papers) 2509, Department of Economics - dECON. [Downloadable!]
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  4. Rafael Di Tella & Robert MacCulloch, 2007. "Happiness, Contentment and Other Emotions for Central Banks," NBER Working Papers 13622, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Mariana Gerstenbluth & Máximo Rossi & Patricia Trinunfo, 2008. "Felicidad y Salud una aproximación al bienestar en el Río de la Plata," Estudios de Economia, University of Chile, Department of Economics, vol. 35(1 Year 20), pages 65-78, June. [Downloadable!]
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  6. Blanchflower, David G., 2008. "International Evidence on Well-being," IZA Discussion Papers 3354, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Neri, Marcelo Cortes, 2008. "A Perceived Human Development Index," Economics Working Papers (Ensaios Economicos da EPGE) 687, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
  8. Arik Levinson, 2009. "Valuing Public Goods Using Happiness Data: The Case of Air Quality," Working Papers gueconwpa~09-09-03, Georgetown University, Department of Economics. [Downloadable!]
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