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Economic Growth Evens-out Happiness: Evidence from Six Surveys

Author

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  • Andrew E. Clark
  • Sarah Flèche
  • Claudia Senik

Abstract

In spite of the great U-turn that saw income inequality rise in Western countries in the 1980s, happiness inequality has dropped in countries that have experienced income growth (but not in those that did not). Modern growth has reduced the share of both the "very unhappy" and the "perfectly happy". The extension of public amenities has certainly contributed to this greater happiness homogeneity. This new stylized fact comes as an addition to the Easterlin paradox,offering a somewhat brighter perspective for developing countries.

Suggested Citation

  • Andrew E. Clark & Sarah Flèche & Claudia Senik, 2014. "Economic Growth Evens-out Happiness: Evidence from Six Surveys," SOEPpapers on Multidisciplinary Panel Data Research 633, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp633
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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