Happiness economics

Satisfaction with Life Index Map - Map has no authentic source. Map coloured according to The World Map of Happiness, Adrian White, Analytic Social Psychologist, University of Leicester.
green = happiest
red = least happy
Micro-econometric happiness equations have the standard form: Wit = α + βxit + εit.
In this equation W is the reported well-being of individual i at time t, and x is a vector of known variables, which include socio-demographic and socioeconomic characteristics.
Other quantities have been suggested as making people happier. Money correlates with happiness, however at a diminishing rate with how much that amount of money increases.One study, when corrected for social status, showed no correlation between income and happiness. The amount of spare time people have, as well as their control over how much spare time they have, also correlates with happiness. More generally, there is a significant correlation between feeling in control of one's own life and happiness levels. Losing one's job can be a great source of unhappiness.
Children tend to decrease parental happiness, at least until they leave for college, although in terms of a broader life narrative the opposite may be true.Married people are happier, but it is unclear if this is due to the marriage or if already happy people tend to marry.


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