A joint research project conducted by Richard Easterlin of the University of Southern California and Kelsey J. O’Connor of STATEC Research focused on the role of income growth and an individual's happiness.
The study in particular looked at a country's GDP, and results were based on extensive data sets from more than 120 countries from across the economic spectra. The results showed that even when a country's GDP grew, its population's subjective well-being did not necessarily improve.
It did in the short-term, however: people compare their wealth to others that are less fortunate, and conversely for those with lower income. Over time, however, as income rises throughout the population, the comparisons are diminished.
The article thus sheds light on the often-debated Easterlin Paradox. First discovered by Richard Easterlin in 1974, the Easterlin Paradox consists in the findings that richer people (or countries) on average report higher subjective well-being than poorer ones, but over time this relationship vanishes, that is income growth is not related to changes in subjective well-being in the long run.
GDP has often been criticised as an indicator to measure human well-being and standards of living, as it only incorporates a country's economy.
The World Happiness Report, which also measures social security, life expectancy, the freedom to make choices, perceptions of corruption and generosity, places Finland, Denmark and Switzerland in the the top three places. Luxembourg is in 10th position.
