Department of Economics and Business Economics

In a discussion of what characterize a good human life the concept of happiness and what determines happiness is important. Since the late twentieth century economists and other social scientists have shown a fast-growing interest in happiness defined as self-reported well-being. Many contributions have analyzed the relationship between happiness and economic factors, especially income, and other relevant background factors. An initial conviction of no relationship between happiness and income – seen as a paradox in economic terms – has changed to a recognition of a dominantly positive relationship. At the same time several studies find a number of other factors such as age, gender, civil status, income distribution, health and education to be equally, or more important. The chapter gives a survey of this literature.