Wellbeing and happiness in OECD countries

GDP per capita is the most commonly used measure of a country’s economic success, yet it is frequently criticised as a guide to a nation’s wellbeing. A recently released study by the OECD considers some alternatives. The OECD uses illustrative calculations to ‘extend’ GDP to include leisure time, the sharing of income within households and income distribution. A key result of the study is that cross-country ranking based on these indicators and GDP per capita are generally similar, giving support to the conclusion that GDP per capita can serve as a reasonable proxy of overall wellbeing. Also, the OECD researchers find that survey-based data on happiness and life satisfaction across OECD countries are only weakly related to levels of GDP per capita. This article briefly explores the findings of the OECD’s study, and reflects on some of the difficulties in attempting to develop other indicators of wellbeing.