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Happiness and Growth the World Over: Time Series Evidence on the Happiness-Income Paradox

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Listed:
  • Easterlin, Richard A.

    (University of Southern California)

  • Angelescu McVey, Laura

    (University of Southern California)

Abstract

There is no significant relationship between the improvement in happiness and the long term rate of growth of GDP per capita. This is true for three groups of countries analyzed separately ? 17 developed, 9 developing, and 11 transition ? and also for the 37 countries taken together. Time series studies reporting a positive relationship confuse a short-term positive association between the growth of happiness and income, arising from fluctuations in macroeconomic conditions, with the long-term relationship, which is nil.

Suggested Citation

  • Easterlin, Richard A. & Angelescu McVey, Laura, 2009. "Happiness and Growth the World Over: Time Series Evidence on the Happiness-Income Paradox," IZA Discussion Papers 4060, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4060
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    References listed on IDEAS

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    More about this item

    Keywords

    happiness; economic growth; developing countries; transition countries; developed countries;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D60 - Microeconomics - - Welfare Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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