Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being
TL;DR: A detailed review of the literature on subjective well-being and its determinants can be found in this paper, where the authors highlight a range of problems in drawing firm conclusions about the causes of SWB; these include some contradictory evidence, concerns over the impact on the findings of potentially unobserved variables and the lack of certainty on the direction of causality.
Abstract: There is increasing interest in the “economics of happiness”, reflected by the number of articles that are appearing in mainstream economics journals that consider subjective well-being (SWB) and its determinants. This paper provides a detailed review of this literature. It focuses on papers that have been published in economics journals since 1990, as well as some key reviews in psychology and important unpublished working papers. The evidence suggests that poor health, separation, unemployment and lack of social contact are all strongly negatively associated with SWB. However, the review highlights a range of problems in drawing firm conclusions about the causes of SWB; these include some contradictory evidence, concerns over the impact on the findings of potentially unobserved variables and the lack of certainty on the direction of causality. We should be able to address some of these problems as more panel data become available.
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TL;DR: The Age of Irresponsibility, the Dilemma of growth, the Myth of Decoupling, the Iron Cage of Consumerism, and the Green New Deal as mentioned in this paper.
Abstract: Foreword 1. Prosperity Lost 2. The Age of Irresponsibility 3. Redefining Prosperity 4. The Dilemma of Growth 5. The Myth of Decoupling 6. The 'Iron Cage' of Consumerism 7. Keynesianism and the 'Green New Deal' 8. Ecological Macro-Economics 9. Flourishing - within Limits 10. Governance for Prosperity 11. The Transition to a Sustainable Economy 12. A Lasting Prosperity Appendices References Endnotes
2,113 citations
TL;DR: The findings reinforce the need to measure subjective well-being as a multi-dimensional construct in future surveys, and indicate which features may provide the most promising targets for policies to improveWell-being.
Abstract: Governments around the world are recognising the importance of measuring subjective well-being as an indicator of progress. But how should well-being be measured? A conceptual framework is offered which equates high well-being with positive mental health. Well-being is seen as lying at the opposite end of a spectrum to the common mental disorders (depression, anxiety). By examining internationally agreed criteria for depression and anxiety (DSM and ICD classifications), and defining the opposite of each symptom, we identify ten features of positive well-being. These combine feeling and functioning, i.e. hedonic and eudaimonic aspects of well-being: competence, emotional stability, engagement, meaning, optimism, positive emotion, positive relationships, resilience, self esteem, and vitality. An operational definition of flourishing is developed, based on psychometric analysis of indicators of these ten features, using data from a representative sample of 43,000 Europeans. Application of this definition to respondents from the 23 countries which participated in the European Social Survey (Round 3) reveals a four-fold difference in flourishing rate, from 41% in Denmark to less than 10% in Slovakia, Russia and Portugal. There are also striking differences in country profiles across the 10 features. These profiles offer fresh insight into cultural differences in well-being, and indicate which features may provide the most promising targets for policies to improve well-being. Comparison with a life satisfaction measure shows that valuable information would be lost if well-being was measured by life satisfaction. Taken together, our findings reinforce the need to measure subjective well-being as a multi-dimensional construct in future surveys.
1,126 citations
Cites background from "Do we really know what makes us hap..."
...…with a range of positive outcomes, including effective learning, productivity and creativity, good relationships, pro-social behaviour, and good health and life expectancy (see reviews by Chida and Steptoe 2008; Diener et al. 2010a; Dolan et al. 2008; Huppert 2009b; Lyubomirsky et al. 2005)....
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...Both of these factors typically show strong associations with low well-being (e.g. Dolan et al. 2008)....
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...Other investigators (e.g. Dolan et al. 2008; Helliwell and Putnam 2004) have noted the close similarity between measures of overall life satisfaction and happiness....
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TL;DR: The report, published by the Earth Institute and co-edited by the institute's director, Jeffrey Sachs, reflects a new worldwide demand for more attention to happiness and absence of misery as criteria for government policy.
Abstract: The report, published by the Earth Institute and co-edited by the institute’s director, Jeffrey Sachs, reflects a new worldwide demand for more attention to happiness and absence of misery as criteria for government policy. It reviews the state of happiness in the world today and shows how the new science of happiness explains personal and national variations in happiness.
911 citations
TL;DR: A review focusing on positive aspects of well-being, or flourishing, examines evidence for the causes of positive wellbeing and also its consequences, including beneficial effects for many aspects of cognitive functioning, health, and social relationships.
Abstract: This review focuses on positive aspects of well-being, or flourishing. It examines evidence for the causes of positive well-being and also its consequences, including beneficial effects for many aspects of cognitive functioning, health, and social relationships. The neurobiological basis of psychological well-being is examined, and recent data on brain activation and neurochemical pathways are presented. Individuals vary widely in their habitual level of psychological wellbeing, and there is evidence for a seminal role of social factors and the early environment in this process. It is often assumed that the drivers of well-being are the same as (but in the opposite direction to) the drivers of ill-being, but while this is true for some drivers, others have more selective effects. Future developments in the science of well-being and its application require a fresh approach—beyond targeting the alleviation of disorder to a focus on personal and interpersonal flourishing. A universal intervention approach is outlined which may both increase population flourishing and reduce common mental health problems.
879 citations
Cites background from "Do we really know what makes us hap..."
...While most studies find higher educational qualifications protective against poor mental health, a few have found a reverse gradient for education (see Dolan et al., 2008; Fagg et al., 2008)....
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...In general, there is a social gradient whereby higher levels of income and socioeconomic status are associated with higher levels of well-being and lower rates of disorder (e.g. Dolan et al., 2008; Ryff & Singer, 1998b), although this effect diminishes at progressively higher levels of income....
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05 Feb 2018
TL;DR: Using indicators designed to measure a safe and just development space, the authors quantify the resource use associated with meeting basic human needs, and compare this to downscaled planetary boundaries for over 150 nations, finding that no country meets basic needs for its citizens at a globally sustainable level of resource use.
Abstract: Humanity faces the challenge of how to achieve a high quality of life for over 7 billion people without destabilizing critical planetary processes. Using indicators designed to measure a ‘safe and just’ development space, we quantify the resource use associated with meeting basic human needs, and compare this to downscaled planetary boundaries for over 150 nations. We find that no country meets basic needs for its citizens at a globally sustainable level of resource use. Physical needs such as nutrition, sanitation, access to electricity and the elimination of extreme poverty could likely be met for all people without transgressing planetary boundaries. However, the universal achievement of more qualitative goals (for example, high life satisfaction) would require a level of resource use that is 2–6 times the sustainable level, based on current relationships. Strategies to improve physical and social provisioning systems, with a focus on sufficiency and equity, have the potential to move nations towards sustainability, but the challenge remains substantial.
811 citations
References
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TL;DR: Two 10-item mood scales that comprise the Positive and Negative Affect Schedule (PANAS) are developed and are shown to be highly internally consistent, largely uncorrelated, and stable at appropriate levels over a 2-month time period.
Abstract: In recent studies of the structure of affect, positive and negative affect have consistently emerged as two dominant and relatively independent dimensions. A number of mood scales have been created to measure these factors; however, many existing measures are inadequate, showing low reliability or poor convergent or discriminant validity. To fill the need for reliable and valid Positive Affect and Negative Affect scales that are also brief and easy to administer, we developed two 10-item mood scales that comprise the Positive and Negative Affect Schedule (PANAS). The scales are shown to be highly internally consistent, largely uncorrelated, and stable at appropriate levels over a 2-month time period. Normative data and factorial and external evidence of convergent and discriminant validity for the scales are also presented.
34,482 citations
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TL;DR: The Satisfaction With Life Scale is narrowly focused to assess global life satisfaction and does not tap related constructs such as positive affect or loneliness, but is shown to have favorable psychometric properties, including high internal consistency and high temporal reliability.
Abstract: This article reports the development and validation of a scale to measure global life satisfaction, the Satisfaction With Life Scale (SWLS). Among the various components of subjective well-being, the SWLS is narrowly focused to assess global life satisfaction and does not tap related constructs such as positive affect or loneliness. The SWLS is shown to have favorable psychometric properties, including high internal consistency and high temporal reliability. Scores on the SWLS correlate moderately to highly with other measures of subjective well-being, and correlate predictably with specific personality characteristics. It is noted that the SWLS is suited for use with different age groups, and other potential uses of the scale are discussed.
21,449 citations
TL;DR: The Satisfaction With Life Scale (SWLS) as mentioned in this paper is a scale to measure global life satisfaction, which does not tap related constructs such as positive affect or loneliness, and has favorable psychometric properties, including high internal consistency and high temporal reliability.
Abstract: This article reports the development and validation of a scale to measure global life satisfaction, the Satisfaction With Life Scale (SWLS). Among the various components of subjective well-being, the SWLS is narrowly focused to assess global life satisfaction and does not tap related constructs such as positive affect or loneliness. The SWLS is shown to have favorable psychometric properties, including high internal consistency and high temporal reliability. Scores on the SWLS correlate moderately to highly with other measures of subjective well-being, and correlate predictably with specific personality characteristics. It is noted that the SWLS is Suited for use with different age groups, and other potential uses of the scale are discussed.
20,751 citations
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TL;DR: Wilson's (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of "happiness". A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB.
Abstract: W. Wilson's (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of "happiness". A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB. E. Diener's (1984) review placed greater emphasis on theories that stressed psychological factors. In the current article, the authors review current evidence for Wilson's conclusions and discuss modern theories of SWB that stress dispositional influences, adaptation, goals, and coping strategies. The next steps in the evolution of the field are to comprehend the interaction of psychological factors with life circumstances in producing SWB, to understand the causal pathways leading to happiness, understand the processes underlying adaptation to events, and develop theories that explain why certain variables differentially influence the different components of SWV (life satisfaction, pleasant affect, and unpleasant affect).
9,254 citations
"Do we really know what makes us hap..." refers methods in this paper
...Looking at international data using the World Values Survey, Fahey and Smyth (2004) find that inequality reduces life satisfaction and Hagerty (2000) finds a negative relationship with SWB, whereas Haller and Hadler (2006) find that inequality increases life satisfaction....
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TL;DR: Wilson's (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of "happiness" A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB as discussed by the authors.
Abstract: W Wilson's (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of "happiness" A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB E Diener's (1984) review placed greater emphasis on theories that stressed psychological factors In the current article, the authors review current evidence for Wilson's conclusions and discuss modern theories of SWB that stress dispositional influences, adaptation, goals, and coping strategies The next steps in the evolution of the field are to comprehend the interaction of psychological factors with life circumstances in producing SWB, to understand the causal pathways leading to happiness, understand the processes underlying adaptation to events, and develop theories that explain why certain variables differentially influence the different components of SWB (life satisfaction, pleasant affect, and unpleasant affect) In 1967, Warner Wilson presented a broad review of subjective well-being (SWB) research entitled, "Correlates of Avowed Happiness" Based on the limited data available at that time, Wilson concluded that the happy person is a "young, healthy, welleducated, well-paid, extroverted, optimistic, worry-free, religious, married person with high self-esteem, job morale, modest aspirations, of either sex and of a wide range of intelligence" (p 294) In the three decades since Wilson's review, investigations into SWB have evolved Although researchers now know a great deal more about the correlates of SWB, they are less interested in simply describing the demographic characteristics that correlate with it Instead, they focus their effort on understanding the processes that underlie happiness This trend represents a greater recognition of the central role played by people's goals, coping efforts, and dispositions In this article, we review research on several major theoretical approaches to well-being and then indicate how these theories clarify the findings on demographic correlates of SWB Throughout the review we suggest four directions that researchers should pursue in the decades ahead These are by no means the only questions left to answer, but we believe they are the most interesting issues left to resolve First, the causal direction of the correlates of happiness must be examined through more sophisticated methodologies Although the causal priority of demographic factors such as marriage and income is intuitively appealing, it is by no means certain Second, researchers must focus greater attention on the interaction between internal factors (such as personality traits) and external circumstances As we shall see, demographic factors have surprisingly small effects on SWB, but these effects may depend on the personalities of those individuals being studied Thus, future research must take Person X Situation interactions into account Third, researchers must strive to understand the processes underlying adaptation Considerable adaptation to both good and bad circumstances often occurs, yet the processes responsible for these effects are poorly understood Research that examines how habituation, coping strategies, and changing goals influence adaptation will shed much light on the processes responsible for SWB Finally, theories must be refined to make specific predictions about how input variables differentially influence the components of SWB In the past, many researchers have treated SWB as a monolithic entity, but it is now clear that there are separable components that exhibit unique patterns of relations with different variables In each section of this article we discuss progress and opportunities in these four areas
8,352 citations