The Origins of Happiness

Chapter 16

16.2). Even in China, happiness was no higher in 2010 than

it was in 1990.^15

We would be very happy if the cross- section of countries

could predict the time- series. But the cross- section surely

reflects an element of international comparison, in which

case income gains all round the world will have less effect

than the table implies. However, we do not think that in-

come gains and losses should be treated as unimportant,

and we recommend that a sensible approach to income in

project evaluation would be to assume that a doubling of

income raises happiness by 0.12 points (as in the first col-

umn of Table 16.2).

Figure 16.2. Average income and well- being over time

Year Year

Life

-satisfa

ctio

n 1–

7

GD

P pe

r capita

($

20

10

,^000

’s)

6

5

4

38

36

34

32

30

28

1995 2000 2005 2010 2015

Britain (BHPS)

Life

-satisfa

ctio

n

0–

10

GD

P pe

r capita

($

20

10

,^000

9 ’s)

8

7

6

5

45

40

35

30

25

1980 1990 2000 2010 2020

West Germany (SOEP)

Life

-satisfa

ctio

n

0–

10

GD

P pe

r capita

($

20

10

, 000’

9 s)

8

7

6

5

44

42

40

38

36

2000 2005 2010 2015

Australia (HILDA)

Happiness

1–

3

GD

P pe

r capita

($

20

10

, 000’

3.0 s)

2.5

2.0

1.5

50

40

30

20

10

1940 1960 1980 2000 2020

USA (AIPO+GSS)