Arbeitspapier

The Easterlin Paradox

The Easterlin Paradox states that at a point in time happiness varies directly with income, both among and within nations, but over time the long-term growth rates of happiness and income are not significantly related. The principal reason for the contradiction is social comparison. At a point in time those with higher income are happier because they are comparing their income to that of others who are less fortunate, and conversely for those with lower income. Over time, however, as incomes rise throughout the population, the incomes of one's comparison group rise along with one's own income and vitiates the otherwise positive effect of own-income growth on happiness. Critics of the Paradox mistakenly present the positive relation of happiness to income in cross-section data or in short-term time fluctuations as contradicting the nil relation of long-term trends.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 13923

Klassifikation
Wirtschaft
General Welfare; Well-Being
Welfare Economics: General
Economic Development: General
Thema
Easterlin Paradox
economic growth
income
happiness
life satisfaction
subjective well-being
long-term
short-term
trends
fluctuations
transition countries
less developed countries
developed countries

Ereignis
Geistige Schöpfung
(wer)
Easterlin, Richard A.
O'Connor, Kelsey J.
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Easterlin, Richard A.
  • O'Connor, Kelsey J.
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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