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Why do economists study happiness?

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  • Marcin PiekaÅ‚kiewicz

Abstract

Recently economists have expressed increasing interest in studying the determinants of happiness. Their main task has been to identify economic and non-economic sources of well-being to define policies aimed at maximising happiness in nations. As yet, it has not been precisely explained why ‘happiness economics’ is actually a part of economic science. In this article, we show that happiness can be an economic concept providing a critical review of the literature on (a) economic applications of happiness data and (b) economic consequences of happiness. Happiness data have been used to analyse microeconomic phenomena and to value non-market goods. Happiness may act as a determinant of economic outcomes: it increases productivity, predicts one’s future income and affects labour market performance. A growing number of happiness studies indicate a role of personality traits in understanding the link between well-being and economic outcomes.

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  • Marcin PiekaÅ‚kiewicz, 2017. "Why do economists study happiness?," The Economic and Labour Relations Review, , vol. 28(3), pages 361-377, September.
    • Handle: RePEc:sae:ecolab:v:28:y:2017:i:3:p:361-377
    DOI: 10.1177/1035304617717130
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    Cited by:

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    2. Helena Lopes & Sérgio Lagoa & Ana C Santos, 2019. "Work conditions and financial difficulties in post-crisis Europe: Utility versus quality of working life," The Economic and Labour Relations Review, , vol. 30(1), pages 39-58, March.
    3. Greyling, Talita & Rossouw, Stephanie & Adhikari, Tamanna, 2020. "A tale of three countries: How did Covid-19 lockdown impact happiness?," GLO Discussion Paper Series 584, Global Labor Organization (GLO).
    4. Rossouw, Stephanie & Greyling, Talita & Adhikari, Tamanna, 2021. "New Zealand's happiness and COVID-19: a Markov Switching Dynamic Regression Model," GLO Discussion Paper Series 573 [rev.], Global Labor Organization (GLO).
    5. Greyling, Talita & Rossouw, Stephanie & Adhikari, Tamanna, 2020. "Happiness-lost: Did Governments make the right decisions to combat Covid-19?," GLO Discussion Paper Series 556, Global Labor Organization (GLO).
    6. A. l. Moro-Egido & M. Navarro & A. Sánchez, 2022. "Changes in Subjective Well-Being Over Time: Economic and Social Resources do Matter," Journal of Happiness Studies, Springer, vol. 23(5), pages 2009-2038, June.
    7. María Navarro, 2023. "Social-Cultural Capital and Domain Satisfaction," Hacienda Pública Española / Review of Public Economics, IEF, vol. 246(3), pages 37-70, September.
    8. Talita Greyling & Stephanie Rossouw & Tamanna Adhikari, 2021. "A Tale of Three Countries: What is the Relationship Between COVID‐19, Lockdown and Happiness?," South African Journal of Economics, Economic Society of South Africa, vol. 89(1), pages 25-43, March.
    9. Navarro, María & D'Agostino, Antonella & Neri, Laura, 2020. "The effect of urbanization on subjective well-being: Explaining cross-regional differences," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    Happiness; labour market outcomes; personality traits; productivity; subjective well-being; utility;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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