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What Do Happiness Data Mean? Theory and Survey Evidence

Author

Listed:
  • Daniel J. Benjamin

    (UCLA / NBER)

  • Jakina Debnam Guzman

    (Amherst College)

  • Marc Fleurbaey

    (Paris School of Economics)

  • Ori Heffetz

    (Cornell University / The Hebrew University of Jerusalem / NBER)

  • Miles Kimball

    (University of Colorado Boulder / NBER)

Abstract

What utility notion do self-reported well-being (SWB) questions measure? We clarify the assumptions that underlie existing applications regarding the (i) life domains, (ii) time horizons, and (iii) other-regarding preferences captured by SWB data. We ask survey respondents what they had in mind regarding (i)–(iii) when answering commonly used—life satisfaction, happiness, ladder—and new SWB questions. Respondents put most weight on the present and on themselves—but not enough to interpret SWB data as measuring notions of flow utility and self-centered utility. We find differences across SWB questions and across sociodemographic groups. We outline actionable suggestions for SWB researchers.

Suggested Citation

  • Daniel J. Benjamin & Jakina Debnam Guzman & Marc Fleurbaey & Ori Heffetz & Miles Kimball, 2021. "What Do Happiness Data Mean? Theory and Survey Evidence," GRU Working Paper Series GRU_2021_002, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    • Handle: RePEc:cth:wpaper:gru_2021_002
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    Cited by:

    1. Han, Jeehoon & Kaiser, Caspar, 2021. "Time use and happiness: Evidence across three decades," SocArXiv qjdmu, Center for Open Science.
    2. Kaiser, Caspar, 2022. "Using memories to assess the intrapersonal comparability of wellbeing reports," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 410-442.
    3. Kristen Cooper & Mark Fabian & Christian Krekel, 2023. "New approaches to measuring welfare," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 123-135, June.
    4. Tobias Börger & Anna Maccagnan & Mathew P. White & Lewis R. Elliott & Tim Taylor, 2023. "Was the trip worth it? Consistency between decision and experienced utility assessments of recreational nature visits," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 525-545, March.
    5. Fumagalli, Elena & Fumagalli, Laura, 2022. "Subjective well-being and the gender composition of the reference group: Evidence from a survey experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 196-219.
    6. Alan Piper, 2022. "Optimism, pessimism and life satisfaction: an empirical investigation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 177-208, June.
    7. Frijters, Paul & Krekel, Christian & Ulker, Aydogan, 2023. "Should bads be inflicted all at once, like Machiavelli said? Evidence from life-satisfaction data," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 1-27.

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    More about this item

    Keywords

    happiness; life satisfaction; subjective well-being; survey questions;
    All these keywords.

    JEL classification:

    • D69 - Microeconomics - - Welfare Economics - - - Other
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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