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Feeding the Illusion of Growth and Happiness: A Reply to Hagerty and Veenhoven

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  • Richard Easterlin

Abstract

In a rebuttal of Easterlin (1995), Hagerty and Veenhoven (2003) hereafter H-V analyze data for 21 countries and conclude that "growing national income does go with greater happiness." But the U.S. experience does not support this conclusion, which they obtain only by mixing together two sets of noncomparable surveys. Moreover, the results of studies of European countries and the U.S. by other scholars do not support their claim either. Furthermore, the experience of 6 out of 7 of their non-European countries fails to support their claim too. Finally, if countries in their analysis with quite similar growth rates are grouped, one finds quite disparate trends in happiness, suggesting that factors other than growth in income are responsible for the differential trends in happiness. Instead of straining to feed the illusion that a focus on economic growth will create happiness, an approach is needed that explores the impact on national trends in life satisfaction, not just of material goods, but also of family life, health, work utility, and the like.
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Suggested Citation

  • Richard Easterlin, 2005. "Feeding the Illusion of Growth and Happiness: A Reply to Hagerty and Veenhoven," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(3), pages 429-443, December.
    • Handle: RePEc:spr:soinre:v:74:y:2005:i:3:p:429-443
    DOI: 10.1007/s11205-004-6170-z
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    References listed on IDEAS

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    1. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    2. Bernhard Christoph & Heinz-Herbert Noll, 2003. "Subjective Well-Being in the European Union during the 90ies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 64(3), pages 521-546, December.
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    5. Ruut Veenhoven, 1991. "Is happiness relative?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 24(1), pages 1-34, February.
    6. Richard Easterlin, "undated". "Diminishing Marginal Utility of Income? A Caveat," University of Southern California Legal Working Paper Series usclwps-1004, University of Southern California Law School.
    7. Michael Hagerty & Ruut Veenhoven, 2003. "Wealth and Happiness Revisited – Growing National Income Does Go with Greater Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 64(1), pages 1-27, October.
    8. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    9. Richard Easterlin, 2005. "Diminishing Marginal Utility of Income? Caveat Emptor," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 70(3), pages 243-255, February.
    10. Valerie Møller & Helga Dickow, 2002. "The Role of Quality of Life Surveys in Managing Change in Democratic Transitions: The South African Case," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 58(1), pages 267-292, June.
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