Contents
- Studies on the influence of economic factors on happiness and well-being are numerous. The topic is complex and multifaceted, as income studies show. Numerous studies agree that income inequality, rather than absolute income, is an important predictor of happiness. However, the role of income inequality is controversial. Yu and Wang (2017) argue that income inequality and satisfaction show an inverted U-shaped relationship due to the dynamic, competing process between two effects. When income inequality is relatively low, the signal effect will be the dominant factor, whereby people feel happy because they view income as a signal of social mobility and expected upward mobility. However, when a society’s level of income inequality rises beyond a critical point, the envy effect becomes the dominant factor, whereby people are more likely to be unhappy due to a lack of prospects for upward mobility and due to envy of their wealthier peers. (1)
- A review by Dolan, Peasgood, and White (2007) examined the relationship between economic factors and subjective well-being. The study concludes that poor health, separation, unemployment, and lack of social contacts are strongly negatively associated with subjective well-being. (2) The results of this study are presented below.
- Influence of Age: Studies suggest a U-shaped curve with higher well-being in younger and older age and the lowest life satisfaction in middle age, between 32 and 50 years, depending on the study.
- Gender: Women tend to report higher happiness but poorer scores on the General Health Questionnaire, although some studies report no gender-specific differences.
- Personality: There is a very moderate relationship between subjective well-being and personality. People with higher self-esteem appear to suffer less from depression.
- Education: Some studies show a positive relationship between each additional level of education and subjective well-being, while other studies find that secondary education is associated with the highest life satisfaction. However, there is evidence that education has a more positive effect in low-income countries. Educational qualifications may be related to unobservable individual-level characteristics such as motivation, intelligence, or family background, and the benefit of education may be positional rather than absolute.
- Health: A strong correlation between subjective well-being and physical and psychological health has been observed.
- Type of Work: There is insufficient study data to draw clear conclusions regarding the impact of work on well-being. Many European studies find no significant difference between employment and self-employment. The positive effect of self-employment is limited to the wealthy population.
- Caring for others: More care/nurturing for others is associated with poorer General Health Questionnaire results, lower satisfaction, and more depressive symptoms.
- Autonomy: This has been proposed as an essential prerequisite for well-being. The losses of satisfaction associated with caregiving may be due to the loss of autonomy and choice as a full-time care role.
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- Attitudes and Beliefs towards oneself, others, and life: Membership in (non-religious) organizations and regular engagement in religious activities have a positive effect on subjective well-being. Simple types of activities such as gardening can be associated with higher life satisfaction, and this is particularly important for those over 60. Perceptions of circumstances: A poorer self-perception of one’s current financial situation is usually associated with lower life satisfaction. Social trust (trust in the majority of fellow human beings) is associated with higher life satisfaction and contentment, as well as a lower likelihood of suicide. In general, our beliefs influence our subjective well-being. Religious people are generally happier than non-religious people, regardless of their faith. Belief in a God means a higher level of life satisfaction, with the specific religion being secondary. Being alone seems to be worse for life satisfaction than being in a partnership. Regular sex is associated with more positive life satisfaction, especially with a partner. This indicates that being in a caring relationship, rather than just a series of less close relationships, is important for well-being. Evidence regarding the extent to which well-being depends on children varies and differs depending on the study and country. Contact with family, but not with friends, shows a significantly positive effect on life satisfaction. However, the effect is small.
- Broader economic, social, and political environment: Research on the effects of income inequality on well-being is inconsistent. In the USA and Europe, national unemployment rates have been found to reduce subjective well-being. Evidence on the effects of the welfare state is limited. There continues to be a positive correlation between democracy and life satisfaction. Environmental problems encountered reduce life satisfaction; for example, pollution measured by nitrogen dioxide impairs general satisfaction. Living in an unsafe or disadvantaged area negatively affects life satisfaction. For Europe, it has been found that living in large cities impairs life satisfaction, while living in rural areas is beneficial.
- Personal guides usually illuminate the topic from different angles. The focus is particularly on how subjective well-being and the feeling of happiness can, to some extent, be trained. Here, the perspective that happiness and being happy mean something different for everyone, and that living conditions do not decisively determine our happiness, is paramount. The question here is how we can adapt to changing living conditions and problems, and how we can increase our experience of happiness and well-being. This also includes self-reflection on how our attitude towards happiness influences how many happy moments we experience. In fact, there are many proven and scientifically studied ways you can do something yourself to feel happier and more content. Here are my Top 9 Tips for Happiness.
- Yu Z, Wang F. Income Inequality and Happiness: An Inverted U-Shaped Curve. Front Psychol. 2017;8:2052.
- Dolan P, Peasgood T, White M. Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being Journal of Economic Psychology. 2008; 29: 94–122.
