IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v109y2024ics2214804324000272.html
   My bibliography  Save this article

Socioeconomic determinants of happiness: Empirical evidence from developed and developing countries

Author

Listed:
  • Behera, Deepak Kumar
  • Rahut, Dil B
  • Padmaja, M
  • Dash, Ajit Kumar

Abstract

This study aims to understand the factors that contribute to people's happiness or life satisfaction in 166 countries (51 developed, 115 developing) from 2005 to 2020. The study considers the effects of various socioeconomic factors, such as per capita income, social support, freedom to make life choices, perception of corruption, air pollution exposure, and gender inequality, on the level of happiness. We used panel two-way robust fixed effects and panel quantile regression for empirical analysis. The results show that per capita income, social support, and freedom to make life choices positively impact happiness, while air pollution exposure has a negative impact. However, gender inequality does not significantly affect happiness levels. These findings highlight the relevance of the Easterlin Paradox, which suggests that income can mediate happiness by promoting emotional well-being, gender equality, and a clean environment. Therefore, policymakers should focus on creating a more holistic approach to improving the well-being and happiness of its citizens.

Suggested Citation

  • Behera, Deepak Kumar & Rahut, Dil B & Padmaja, M & Dash, Ajit Kumar, 2024. "Socioeconomic determinants of happiness: Empirical evidence from developed and developing countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    • Handle: RePEc:eee:soceco:v:109:y:2024:i:c:s2214804324000272
    DOI: 10.1016/j.socec.2024.102187
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214804324000272
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2024.102187?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Welsch, Heinz, 2007. "Environmental welfare analysis: A life satisfaction approach," Ecological Economics, Elsevier, vol. 62(3-4), pages 544-551, May.
    2. Salauddin Tauseef, 2022. "Can Money Buy Happiness? Subjective Wellbeing and Its Relationship with Income, Relative Income, Monetary and Non-monetary Poverty in Bangladesh," Journal of Happiness Studies, Springer, vol. 23(3), pages 1073-1098, March.
    3. Zeynep B. Ugur, 2021. "Does Money Buy Happiness in Turkey?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(3), pages 1073-1096, June.
    4. Paolo Verme, 2011. "Life Satisfaction And Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 111-127, March.
    5. Marco Ciziceno & Giovanni A. Travaglino, 2019. "Perceived Corruption and Individuals’ Life Satisfaction: The Mediating Role of Institutional Trust," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 685-701, January.
    6. Veljko Jovanović & Mohsen Joshanloo, 2022. "The Contribution of Positive and Negative Affect to Life Satisfaction across Age," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 511-524, April.
    7. Peggy Schyns, 1998. "Crossnational Differences in Happiness: Economic and Cultural Factors Explored," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 43(1), pages 3-26, February.
    8. Ruut Veenhoven, 1991. "Is happiness relative?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 24(1), pages 1-34, February.
    9. John F. Helliwell, 2006. "Well-Being, Social Capital and Public Policy: What's New?," Economic Journal, Royal Economic Society, vol. 116(510), pages 34-45, March.
    10. Karen Siedlecki & Timothy Salthouse & Shigehiro Oishi & Sheena Jeswani, 2014. "The Relationship Between Social Support and Subjective Well-Being Across Age," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(2), pages 561-576, June.
    11. Kingdon, Geeta Gandhi & Knight, John, 2007. "Community, comparisons and subjective well-being in a divided society," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 69-90, September.
    12. Bartolini, Stefano & Sarracino, Francesco, 2014. "Happy for how long? How social capital and economic growth relate to happiness over time," Ecological Economics, Elsevier, vol. 108(C), pages 242-256.
    13. Mak Arvin & Byron Lew, 2014. "Does income matter in the happiness-corruption relationship?," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 41(3), pages 469-490, May.
    14. Koohborfardhaghighi, Somayeh & Summers, Christopher R. & Heshmati, Almas & Altmann, Jörn, 2022. "Influence of Freedom of Choice on Happiness," IZA Discussion Papers 15315, Institute of Labor Economics (IZA).
    15. La, Binh Thanh & Lim, Steven & Cameron, Michael P. & Tran, Tuyen Quang & Nguyen, Minh Thi, 2021. "Absolute income, comparison income and subjective well-being in a transitional country: Panel evidence from Vietnamese household surveys," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 368-385.
    16. Mentzakis, Emmanouil & Moro, Mirko, 2009. "The poor, the rich and the happy: Exploring the link between income and subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 147-158, January.
    17. Asadullah, M. Niaz & Xiao, Saizi & Yeoh, Emile, 2018. "Subjective well-being in China, 2005–2010: The role of relative income, gender, and location," China Economic Review, Elsevier, vol. 48(C), pages 83-101.
    18. Jamile Youssef & Sara Diab, 2021. "Does quality of governance contribute to the heterogeneity in happiness levels across MENA countries?," Journal of Business and Socio-economic Development, Emerald Group Publishing Limited, vol. 1(1), pages 87-101, May.
    19. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May.
    20. Zeynep B. Ugur, 2021. "How does Inequality Hamper Subjective Well-being? The Role of Fairness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 377-407, December.
    21. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, January.
    22. Belasen, Ariel R. & Hafer, R.W., 2013. "Do Changes in Economic Freedom affect Well-Being?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(1).
    23. MacKerron, George & Mourato, Susana, 2009. "Life satisfaction and air quality in London," Ecological Economics, Elsevier, vol. 68(5), pages 1441-1453, March.
    24. Verme, Paolo, 2009. "Happiness, freedom and control," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 146-161, August.
    25. David G. Blanchflower, 2021. "Is happiness U-shaped everywhere? Age and subjective well-being in 145 countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 575-624, April.
    26. Gerhard Meisenberg & Michael Woodley, 2015. "Gender Differences in Subjective Well-Being and Their Relationships with Gender Equality," Journal of Happiness Studies, Springer, vol. 16(6), pages 1539-1555, December.
    27. Ed Diener & Christie Napa-Scollon & Shigehiro Oishi & Vivian Dzokoto & Eunkook Suh, 2000. "Positivity and the Construction of Life Satisfaction Judgments: Global Happiness is not the Sum of its Parts," Journal of Happiness Studies, Springer, vol. 1(2), pages 159-176, June.
    28. Juncal Cuñado & Fernando Gracia, 2013. "Environment and Happiness: New Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(3), pages 549-567, July.
    29. Muresan, Gabriela Mihaela & Ciumas, Cristina & Dragos, Simona Laura & Mare, Codruta, 2023. "Can private health insurance improve happiness? Evidence from European countries," Finance Research Letters, Elsevier, vol. 58(PD).
    30. Jason Wei Jian Ng & Santha Vaithilingam & Jing Moon Chua, 2019. "Determinants of Well-being for Developing and Developed Countries and their Role in Policy-making: A Panel Data Analysis," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 56(1), pages 85-105, June.
    31. Rati Ram, 2009. "Government spending and happiness of the population: additional evidence from large cross-country samples," Public Choice, Springer, vol. 138(3), pages 483-490, March.
    32. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    33. Angeles, Luis, 2011. "A closer look at the Easterlin Paradox," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 67-73, February.
    34. Betsey Stevenson & Justin Wolfers, 2008. "Happiness Inequality in the United States," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages 33-79, June.
    35. Mookerjee, Rajen & Beron, Krista, 2005. "Gender, religion and happiness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(5), pages 674-685, October.
    36. Wei Cui & Zhihui Yang, 2022. "Association Between Connection to Nature and Children’s Happiness in China: Children’s Negative Affectivity and Gender as Moderators," Journal of Happiness Studies, Springer, vol. 23(1), pages 47-63, January.
    37. Silvio Borrero & Ana Bolena Escobar & Aura María Cortés & Luis Carlos Maya, 2013. "Poor and distressed, but happy: situational and cultural moderators of the relationship between wealth and happiness," Estudios Gerenciales, Universidad Icesi, March.
    38. Gabriela Mihaela MUREŞAN & Cristina CIUMAŞ, 2020. "Money And Happiness: A Conceptual Integration," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(22), pages 1-5.
    39. Simone Borghesi & Alessandro Vercelli, 2012. "Happiness And Health: Two Paradoxes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 203-233, April.
    40. Sibel Selim, 2008. "Life Satisfaction and Happiness in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(3), pages 531-562, September.
    41. Sujarwoto Sujarwoto & Gindo Tampubolon & Adi Cilik Pierewan, 2018. "Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(4), pages 927-945, December.
    42. Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.
    43. Andre P. Audette & Sean Lam & Haley O’Connor & Benjamin Radcliff, 2019. "(E)Quality of Life: A Cross-National Analysis of the Effect of Gender Equality on Life Satisfaction," Journal of Happiness Studies, Springer, vol. 20(7), pages 2173-2188, October.
    44. Chien-Chiang Lee & Mei-Ping Chen & Yi-Ting Peng, 2021. "Tourism development and happiness: International evidence," Tourism Economics, , vol. 27(5), pages 1101-1136, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. O'Donnell, Gus & Oswald, Andrew J., 2015. "National well-being policy and a weighted approach to human feelings," Ecological Economics, Elsevier, vol. 120(C), pages 59-70.
    2. Juncal Cuñado & Fernando Gracia, 2013. "Environment and Happiness: New Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(3), pages 549-567, July.
    3. Yuan, Liang & Shin, Kongjoo & Managi, Shunsuke, 2018. "Subjective Well-being and Environmental Quality: The Impact of Air Pollution and Green Coverage in China," Ecological Economics, Elsevier, vol. 153(C), pages 124-138.
    4. Johannes Emmerling & Paula Navarro & Matthew R. Sisco, 2021. "Subjective Well-Being at the Macro Level—Empirics and Future Scenarios," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 899-928, October.
    5. García-Mainar, Inmaculada & Montuenga, Víctor M. & Navarro-Paniagua, María, 2015. "Workplace environmental conditions and life satisfaction in Spain," Ecological Economics, Elsevier, vol. 119(C), pages 136-146.
    6. Iddisah Sulemana, 2016. "Are Happier People More Willing to Make Income Sacrifices to Protect the Environment?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 447-467, May.
    7. Tiziana Laureti, 2014. "Life satisfaction and environmental conditions in Italy: a pseudo-panel approach," Discussion Papers 2014/192, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Andre P. Audette & Sean Lam & Haley O’Connor & Benjamin Radcliff, 2019. "(E)Quality of Life: A Cross-National Analysis of the Effect of Gender Equality on Life Satisfaction," Journal of Happiness Studies, Springer, vol. 20(7), pages 2173-2188, October.
    9. Timothy Hinks, 2012. "Fractionalization and well-being: Evidence from a new South African data set," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(3), pages 253-271, December.
    10. María Navarro, 2019. "Financial, Job and Health Satisfaction: A Comparative Approach on Working People," Societies, MDPI, vol. 9(2), pages 1-17, April.
    11. Binder, Martin & Blankenberg, Ann-Kathrin, 2016. "Environmental concerns, volunteering and subjective well-being: Antecedents and outcomes of environmental activism in Germany," Ecological Economics, Elsevier, vol. 124(C), pages 1-16.
    12. David G. Blanchflower & Alex Bryson, 2024. "The female happiness paradox," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-27, March.
    13. Edsel Beja & David Yap, 2013. "Counting Happiness from the Individual Level to the Group Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 621-637, November.
    14. Manuela Stranges & Daniele Vignoli & Alessandra Venturini, 2019. "Comparison Is The Thief Of Joy. Does Social Comparison Affect Migrants’ Subjective Well-Being?," Working Papers 201906, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    15. Estela Núñez-Barriopedro & Rafael Ravina-Ripoll & Eduardo Ahumada-Tello, 2020. "Happiness perception in Spain, a SEM approach to evidence from the sociological research center," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(3), pages 761-779, June.
    16. Russell Smyth & Ingrid Nielsen & Qingguo Zhai & Tiemin Liu & Yin Liu & C.Y. Tang & Zhihong Wang & Zuxiang Wang & Juyong Zhang, 2008. "Environmental Surroundings And Personal Well-Being In Urban China," Monash Economics Working Papers 32/08, Monash University, Department of Economics.
    17. Elena Bárcena-Martín & Cortés Aguilar Alexandra & Ana I. Moro Egido, 2013. "The role of proximity and social comparisons on subjective well-being," ThE Papers 13/10, Department of Economic Theory and Economic History of the University of Granada..
    18. Pénard, Thierry & Poussing, Nicolas & Suire, Raphaël, 2013. "Does the Internet make people happier?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 105-116.
    19. Xuan Tian & Cheng Zhang & Bing Xu, 2022. "The Impact of Air Pollution on Residents’ Happiness: A Study on the Moderating Effect Based on Pollution Sensitivity," IJERPH, MDPI, vol. 19(12), pages 1-20, June.
    20. Umakrishnan Kollamparambil & Mlungisi Ndlovu, 2023. "Assessing the Income and Subjective Wellbeing Relationship Across Sub-national Developmental Contexts," Journal of Happiness Studies, Springer, vol. 24(2), pages 769-790, February.

    More about this item

    Keywords

    Happiness determinants; Socioeconomic factors; Social support; Freedom to make life choices; Air pollution exposure; Gender inequality; Easterlin paradox;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:109:y:2024:i:c:s2214804324000272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.