Happiness Economics

Happiness economics is the study of happiness, using economic tools and lenses. Economists studying happiness use econometrics, statistics, and units like “satisfaction” and “quality of life.”

The OECD (Organization for Economic Cooperation and Development), measures its 35 member-countries on its Better Life Index, comparing factors like housing, income, jobs, community, education, environment, safety, and even work-life balance.

What have happiness economists found? Well, one thing they’ve found is that happiness is positively correlated with wealthy countries that have well-funded, high-quality governmental institutions. They’ve also found that *more money” stops equaling “more happiness” around $75,000 and $120,000 in income.