International convergence in population happiness: evidence from recent data

In the immense literature on convergence of income and many other variables, this is the first study to consider cross-country convergence in population happiness from large international samples based on data from World Happiness Report (WHR). Three main points stand out. First, WHR data yield significant evidence that is supportive of unconditional beta-convergence in happiness across countries. Second, the evidence is also consistent with sigma-convergence in terms of coefficient of variation. Third, the implied speed of beta-convergence is close to the ‘iron law’ of about 2% per year. Information from World Database of Happiness, which is for earlier years and covers a shorter period, also indicates sigma-convergence in terms of both standard deviation of logarithms and coefficient of variation. It indicates beta-convergence too, but at a slower pace. These findings seem important and reassuring in the context of the frequent worries about lack of income convergence in broad groups of developed and developing countries and the implied possible increase in inequality across countries.