The Easterlin illusion: economic growth does go with greater happiness

Ruut Veenhoven and Floris Vergunst

MPRA Paper from University Library of Munich, Germany

Abstract: The 'Easterlin Paradox' holds that economic growth in nations does not buy greater happiness for the average citizen. This thesis was advanced in the 1970s on the basis of the then available data on happiness in nations. Later data have disproved most of the empirical claims behind the thesis, but Easterlin still maintains that there is no long-term correlation between economic growth and happiness. This last claim was tested using the time trend data available in the World Database of Happiness, which involve 1531 data points in 67 nations that yield 199 time-series ranging from 10 to more than 40 years. The analysis reveals a positive correlation between GDP growth and rise of in happiness in nations. Both GDP and happiness have gone up in most nations, and average happiness has risen more in nations where the economy has grown the most; r =+0.21 p

Keywords: happiness; economic growth; Easterlin Paradox; trend analysis (search for similar items in EconPapers)
JEL-codes: A10 D60 H00 I31 O10 Z10 (search for similar items in EconPapers)
Date: 2013-01-23
New Economics Papers: this item is included in nep-fdg, nep-hap and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Related works:
Journal Article: The Easterlin illusion: economic growth does go with greater happiness (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43983

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