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The key determinants of happiness and misery

Author

Listed:
  • Andrew E. Clark
  • Sarah Flèche
  • Richard Layard
  • Nattavudh Powdthavee
  • George Ward

Abstract

Understanding the key determinants of people's life satisfaction will suggest policies for how best to reduce misery and promote wellbeing. This paper provides evidence from survey data on USA, Australia, Britain and Indonesia, which indicate that the things that matter most are people's social relationships and their mental and physical health. These adult factors affecting happiness are influenced in turn by the pattern of child development: the best predictor of an adult's life satisfaction is their emotional health as a child. These results call for a new focus for public policy - not "wealth-creation" but "wellbeing-creation".

Suggested Citation

  • Andrew E. Clark & Sarah Flèche & Richard Layard & Nattavudh Powdthavee & George Ward, 2017. "The key determinants of happiness and misery," CEP Discussion Papers dp1485, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1485
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    References listed on IDEAS

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    1. repec:hal:pseose:halshs-01109062 is not listed on IDEAS
    2. Ward, George, 2015. "Is happiness a predictor of election results?," LSE Research Online Documents on Economics 61698, London School of Economics and Political Science, LSE Library.
    3. George Ward, 2015. "Is Happiness a Predictor of Election Results?," CEP Discussion Papers dp1343, Centre for Economic Performance, LSE.
    4. Richard Layard & Andrew E. Clark & Francesca Cornaglia & Nattavudh Powdthavee & James Vernoit, 2014. "What Predicts a Successful Life? A Life‐course Model of Well‐being," Economic Journal, Royal Economic Society, vol. 124(580), pages 720-738, November.
    5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    6. Andrew E. Clark & Richard Layard & Claudia Senik, 2012. "The causes of happiness and misery," PSE-Ecole d'économie de Paris (Postprint) halshs-00846583, HAL.
    7. Sarah Flèche, 2017. "Teacher quality, test scores and non-cognitive skills: evidence from primary school teachers in the UK," CEP Discussion Papers dp1472, Centre for Economic Performance, LSE.
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    Cited by:

    1. Peter Smith, 2019. "Can a Strong Economic Case Be Made for Investing in the NHS?," Monograph 002090, Office of Health Economics.
    2. Jacek Rothert & Douglas VanDerwerken & Ethan White, 2020. "Socioeconomic factors and happiness: evidence from self-reported mental health data," Empirical Economics, Springer, vol. 58(6), pages 3101-3123, June.
    3. Orhan Koçak & Namık Ak & Sezer Seçkin Erdem & Mehmet Sinan & Mustafa Z. Younis & Abdullah Erdoğan, 2021. "The Role of Family Influence and Academic Satisfaction on Career Decision-Making Self-Efficacy and Happiness," IJERPH, MDPI, vol. 18(11), pages 1-19, May.
    4. Rafael Domínguez & Borja López-Noval, 2021. "Religiosity and Life Satisfaction Across Countries: New Insights from the Self-Determination Theory," Journal of Happiness Studies, Springer, vol. 22(3), pages 1165-1188, March.
    5. Ravallion, Martin, 2019. "Global inequality when unequal countries create unequal people," European Economic Review, Elsevier, vol. 111(C), pages 85-97.
    6. Maurizio Pugno & Francesco Sarracino, 2021. "Structural Changes in Economic Growth and Well-Being: The Case of Italy’s Parabola," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 801-838, December.
    7. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," IZA Discussion Papers 16454, Institute of Labor Economics (IZA).
    8. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    9. Matthieu Crozet & Laura Hering & Sandra Poncet, 2018. "Looking for the Bright Side of the China Syndrome: Rising Export Opportunities and Life Satisfaction in China," Working Papers 2018-14, CEPII research center.
    10. Strulik, Holger, 2019. "An economic theory of depression and its impact on health behavior and longevity," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 269-287.
    11. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    12. repec:hal:spmain:info:hdl:2441/4srj73kg79978qkvocpskj1tvb is not listed on IDEAS
    13. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More education does make you happier - unless you are unemployed," DICE Discussion Papers 406, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. Richard Freund, 2023. "From drought to distress: unpacking the mental health effects of water scarcity," CSAE Working Paper Series 2023-07, Centre for the Study of African Economies, University of Oxford.
    15. Francesco Sarracino, 2018. "Koutsobinas, Theodore.: The political economy of status: Superstars, markets and culture change. 264pp. Edward Elgar Publishing, Cheltenham, 2014. Hardback, $${\pounds }$$ £ 80," Journal of Economics, Springer, vol. 124(2), pages 207-211, June.
    16. Zavadskas, Edmundas Kazimieras & Kaklauskas, Arturas & Bausys, Romualdas & Naumcik, Andrej & Ubarte, Ieva, 2021. "Integrated hedonic-utilitarian valuation of the built environment by neutrosophic INVAR method," Land Use Policy, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    happiness; subjective wellbeing; life satisfaction; government; mental health;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I10 - Health, Education, and Welfare - - Health - - - General

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    This paper has been announced in the following NEP Reports:

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