Premium
ECONOMIC GROWTH, INCOME AND HAPPINESS: AN EXPLORATORY STUDY
Author(s) -
Mahadea D.,
Rawat T.
Publication year - 2008
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2008.00181.x
Subject(s) - happiness , economics , poverty , demographic economics , life satisfaction , exploratory research , per capita income , income in kind , labour economics , economic growth , public economics , psychology , gross income , social psychology , sociology , demography , tax reform , anthropology , state income tax
The pursuit of high economic growth is considered desirable as it generates an increase in a nation's wealth, income, employment and output. The rising income should enable consumers to purchase more goods and services, which in turn should result in enhanced utility and subjective happiness. Empirical studies suggest that higher income resulting from high rates of economic growth contribute to poverty alleviation and life satisfaction in low income countries. Higher income raises the happiness of the poor. In developed countries, higher income does not seem to “buy” higher happiness, once a threshold level of income is reached. This exploratory study seeks to examine the quantitative and qualitative sources of happiness. A higher absolute level of income is found to be significantly related to subjective happiness. Among the non‐income factors, family togetherness, a good working environment and a higher level of education can contribute to making people happier. Happiness thus involves more than just economic growth and income.