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The Economics of Happiness

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  • Nikolova, Milena
  • Graham, Carol

Abstract

Welfare and well-being have traditionally been gauged by using income and employment statistics, life expectancy, and other objective measures. The Economics of Happiness, which is based on people’s reports of how their lives are going, provides a complementary yet radically different approach to studying human well-being. Typically, subjective well-being measures include positive and negative feelings (e.g., momentary experiences of happiness or stress), life evaluations (e.g., life satisfaction), and feelings of having a life purpose. Both businesses and policymakers now increasingly make decisions and craft policies based on such measures. This chapter provides an overview of the Happiness Economics approach and outlines the promises and pitfalls of subjective well-being measures.

Suggested Citation

  • Nikolova, Milena & Graham, Carol, 2020. "The Economics of Happiness," GLO Discussion Paper Series 640, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:640
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    1. John Ifcher & Homa Zarghamee & Carol Graham, 2019. "Income inequality and well-being in the U.S.: evidence of geographic-scale- and measure-dependence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(3), pages 415-434, September.
    2. 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.
    3. Otrachshenko, Vladimir & Tyurina, Elena & Nagapetyan, Artur, 2022. "The economic value of the Glass Beach: Contingent valuation and life satisfaction approaches," Ecological Economics, Elsevier, vol. 198(C).
    4. Tofallis, Chris, 2020. "Which formula for national happiness?," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    5. Giacomo Degli Antoni & Chiara Franco, 2022. "The effect of technological behaviour and beliefs on subjective well-being: the role of technological infrastructure," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 553-590, April.
    6. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    7. Chu, Shuai & Zeng, Xiangquan & Zimmermann, Klaus F., 2020. "Parental Gender Stereotypes and Student Wellbeing in China," Discussion Papers 307569, University of Bonn, Center for Development Research (ZEF).
    8. David G. Blanchflower & Alex Bryson, 2020. "Now Unions Increase Job Satisfaction and Well-being," DoQSS Working Papers 20-08, Quantitative Social Science - UCL Social Research Institute, University College London.
    9. Marina G. Kolosnitsyna & Natalia A. Khorkina & Khongor N. Dorzhiev, 2014. "What Happens To Happiness When People Get Older? Socio-Economic Determinants Of Life Satisfaction In Later Life," HSE Working papers WP BRP 68/EC/2014, National Research University Higher School of Economics.
    10. Anna Barwińska Małajowicz & Miroslava Knapková & Krzysztof Szczotka & Miriam Martinkovičová & Radosław Pyrek, 2022. "Energy Efficiency Policies in Poland and Slovakia in the Context of Individual Well-Being," Energies, MDPI, vol. 16(1), pages 1-29, December.
    11. Pablo de Pedraza & Martin Guzi & Kea Tijdens, 2020. "Life Dissatisfaction and Anxiety in COVID-19 pandemic," MUNI ECON Working Papers 2020-03, Masaryk University, revised Feb 2023.
    12. Dimitris Ballas & Ilias Thanis, 2022. "Exploring the Geography of Subjective Happiness in Europe During the Years of the Economic Crisis: A Multilevel Modelling Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 105-137, November.
    13. Milena Nikolova & Boris Nikolaev & Christopher Boudreaux, 2023. "Being your own boss and bossing others: the moderating effect of managing others on work meaning and autonomy for the self-employed and employees," Small Business Economics, Springer, vol. 60(2), pages 463-483, February.
    14. Otrachshenko, Vladimir & Nikolova, Milena & Popova, Olga, 2021. "Double-Edged Sword: Persistent Effects of Communism on Life Satisfaction," IZA Discussion Papers 14712, Institute of Labor Economics (IZA).
    15. Cosimato, Silvia & Faggini, Marisa & Prete, Marzia del, 2021. "The co-creation of value for pursuing a sustainable happiness: The analysis of an Italian prison community," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    16. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    17. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).
    18. Larry Dwyer, 2022. "Productivity, Destination Performance, and Stakeholder Well-Being," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-16, July.
    19. Luca Andriani & Gaygysyz Ashyrov, 2022. "Corruption and life satisfaction: Evidence from a transition survey," Kyklos, Wiley Blackwell, vol. 75(4), pages 511-535, November.
    20. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    21. Mojca Svetek & Mateja Drnovsek, 2022. "Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 23(1), pages 149-170, January.
    22. 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.
    23. Pełka Marcin, 2019. "Analysis of Happiness in EU Countries Using the Multi-Model Classification based on Models of Symbolic Data," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 23(3), pages 15-25, September.

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