Happiness, income and poverty
Journal article: There is considerable evidence from a variety of sources to suggest that well-being is a function of relative income. These findings have been used to explain the Easterlin Paradox, whereby a rise in income for all does not lead to a rise in average happiness in a country (even though the cross section relationship between income and happiness is positive). This relativity of utility has led to calls for policy to focus away from GDP. I here first discuss some of the evidence that well-being is indeed relative in income, but then consider two relatively little-analysed issues to suggest that there may continue to be a role for GDP per capita in happiness-based policy: the inequality of subjective well-being, and the specific case of those in income poverty.
Author(s)
Andrew E. Clark
Journal
- International Review of Economics Education
Date of publication
- 2017
Keywords JEL
Keywords
- Happiness
- Income
- Inequality
- Poverty
Pages
- 145-158
URL of the HAL notice
Version
- 1
Volume
- 64