Happiness from an Economic Perspective: A Scientific Inquiry

Marja-Liisa Tenhunen

doi:doi:10.11648/j.eco.20251402.13

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Happiness from an Economic Perspective: A Scientific Inquiry

Marja-Liisa Tenhunen^*

Published in Economics (Volume 14, Issue 2)

Received: 12 May 2025 Accepted: 26 May 2025 Published: 23 June 2025

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Abstract

Happiness, long considered a subjective and intangible concept, has become an increasingly prominent subject within the field of economics. This study aims to investigate happiness from an economic perspective, offering a comprehensive analysis of how economic variables influence individual and collective well-being. Using comparative case studies and empirical data analysis, this study explores the multifaceted relationship between income levels, wealth distribution, economic growth, and subjective well-being. Drawing on both empirical data and established theoretical frameworks, the research examines how relative income - rather than absolute wealth - plays a significant role in shaping personal satisfaction, as individuals often assess their happiness in comparison to others within their socioeconomic environment. Additionally, the study delves into the effects of labor market conditions, such as job stability, wage fairness, and unemployment, as well as the importance of social safety nets and public goods in enhancing societal happiness. Evidence suggests that while rising GDP and economic expansion can improve living standards, they do not automatically translate into increased happiness for all. In fact, high levels of inequality and job insecurity can offset the potential benefits of economic growth. The analysis underscores the importance of adopting a broader set of indicators beyond traditional economic measures to better capture the well-being of populations. The study advocates for the integration of happiness and well-being metrics into policy frameworks, encouraging governments to consider long-term quality of life when shaping economic agendas. Ultimately, the findings highlight the potential for economics not only to understand wealth generation, but also to promote human flourishing through more equitable and sustainable development strategies.

Published in	Economics (Volume 14, Issue 2)
DOI	10.11648/j.eco.20251402.13
Page(s)	45-52
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Happiness Economics, Subjective Well-Being, Income and Inequality, Economic Growth, Policy Implications

1. Introduction

The pursuit of happiness has long been a central theme in human endeavors, influencing personal choices and public policies alike. In recent years, the field of economics has increasingly turned its attention to understanding the determinants and implications of happiness, giving rise to the sub-discipline known as "happiness economics". The research objectives and significance of this article are to explore the intricate relationship between economic factors and individual well-being, examining how variables such as income, employment, and social policies contribute to or detract from happiness. This paper investigates: How do income distribution and economic policies affect happiness across different societies? By delving into this nexus, the study seeks to provide insights that can inform more holistic economic policies aimed at enhancing societal welfare.

2. Theoretical Frameworks on Happiness in Economics

The study of happiness within the field of economics has gained significant traction in recent decades, leading to the development of various theoretical frameworks that seek to explain the determinants and implications of well-being. Traditional economic models have long emphasized income and utility maximization as primary drivers of happiness. However, contemporary research increasingly recognizes that factors such as social relationships, psychological well-being, health, and institutional quality also play vital roles in shaping both individual and societal happiness.

This chapter explores the key economic theories on happiness, ranging from classical utility-based approaches to more recent behavioral and empirical frameworks. These perspectives reveal the multidimensional nature of well-being, moving beyond purely material indicators to incorporate broader determinants of life satisfaction and human flourishing.

Methodology

This study employs a qualitative and comparative case study methodology to investigate how economic frameworks account for happiness across different contexts. The data reviewed includes peer-reviewed academic literature, international survey datasets such as the World Happiness Report and the European Social Survey, and policy papers from global institutions. Case studies were selected based on their geographic diversity, data availability, and representation of varying economic models - ranging from market-based economies to welfare-state models. The analytical approach involves thematic content analysis, identifying recurring patterns and theoretical insights within and across case studies. This method enables a structured examination of how economic variables interact with social and institutional factors to influence subjective well-being.

2.1. The Easterlin Paradox: Economic Growth vs. Subjective Well-being

The Easterlin Paradox, first articulated by Richard Easterlin in the 1970s, challenges the assumption that economic growth directly translates into greater happiness. According to Easterlin’s findings, while higher income is associated with greater happiness within a country at a given point in time, over long periods, increases in a nation's income do not necessarily lead to corresponding increases in overall happiness. This paradox suggests that relative income matters more than absolute income and that beyond a certain threshold, additional wealth does not significantly improve well-being

[9]

One possible explanation for the Easterlin Paradox is the role of social comparison. Individuals assess their well-being relative to others, meaning that as incomes rise across the board, personal satisfaction may not improve significantly. Additionally, adaptation effects suggest that individuals become accustomed to higher levels of income and consumption, leading to diminishing marginal returns on happiness. Recent empirical research has both challenged and refined Easterlin’s claims, emphasizing the complexity of the relationship between economic progress and subjective well-being

[29]

2.2. Prospect Theory and Behavioral Insights into Happiness

Prospect theory, developed by Daniel Kahneman and Amos Tversky, provides a psychological perspective on decision-making under uncertainty, with significant implications for happiness research in economics. The theory posits that individuals evaluate gains and losses relative to a reference point rather than in absolute terms. This framework helps explain why loss aversion - he tendency to feel losses more intensely than equivalent gains - affects economic behavior and overall well-being

[17]

Behavioral economics extends these insights by demonstrating how cognitive biases, heuristics, and emotions shape economic decision-making and happiness. For example, the focusing illusion suggests that people overestimate the impact of specific factors, such as income, on their overall well-being

[26]

. Similarly, the hedonic treadmill concept suggests that people quickly return to a baseline level of happiness after experiencing positive or negative changes

[3]

. Understanding these psychological mechanisms allows economists to design policies that promote happiness more effectively, such as nudges that encourage prosaically behavior and long-term well-being.

2.3. The Capabilities Approach: Beyond Income-Based Measures

Amartya Sen and Martha Nussbaum’s Capabilities Approach provides an alternative framework for evaluating happiness by shifting the focus from income and consumption to human capabilities and freedoms. This approach argues that well-being should be measured not merely by economic indicators but by individuals’ ability to lead lives they value

[28, 23]

The Capabilities Approach emphasizes functioning - actual achievements in aspects of life such as health, education, and social participation - and capabilities, which represent the real opportunities available to individuals. By considering these dimensions, the framework acknowledges that well-being is multidimensional and influenced by factors beyond material wealth. Policymakers applying this perspective advocate for investments in education, healthcare, and social services to enhance human flourishing. The approach has been instrumental in shaping broader measures of progress, such as the Human Development Index (HDI), which accounts for more than just economic output.

2.4. Synthesizing Economic Theories of Happiness

Integrating various economic theories on happiness presents a more comprehensive understanding of well-being. While traditional economic models emphasize income and utility maximization, insights from behavioral economics and the Capabilities Approach highlight the limitations of purely materialistic perspectives. The Easterlin Paradox underscores the importance of relative income and social context, whereas prospect theory and behavioral insights reveal the psychological biases that shape happiness.

A holistic economic theory of happiness would incorporate multiple dimensions, including economic security, health, social relationships, and psychological well-being. Such an approach supports the design of policies that go beyond GDP growth to enhance quality of life. Future research should continue to explore the interplay between economic conditions and subjective well-being, refining our understanding of what truly contributes to human happiness in an economic context.

3. Economic Determinants of Happiness

Studies suggest that income has a diminishing marginal effect on happiness, meaning that beyond a certain threshold, additional income contributes less to subjective well-being. Furthermore, relative income - how one’s earnings compare to peers - can significantly affect happiness, highlighting the importance of social comparisons. Employment status is another key factor; stable employment enhances well-being by providing financial security, social connections, and a sense of purpose, whereas unemployment is strongly associated with lower happiness due to economic hardship and social stigma.

Beyond individual income and employment, macroeconomic factors such as inflation, economic growth, and wealth inequality also shape happiness levels. High inflation and economic instability can create uncertainty and stress, while economic growth, when inclusive, tends to improve well-being by increasing opportunities and living standards. Additionally, wealth inequality can negatively impact happiness, particularly in societies where disparities are stark, leading to lower social cohesion and increased dissatisfaction.

This chapter explores these economic determinants of happiness, drawing on empirical evidence and theoretical frameworks to understand the complex relationship between economic conditions and well-being. By examining these factors, we gain a deeper insight into how economic policies can foster greater happiness in society.

3.1. Income, Wealth, and Subjective Well-being

Income and wealth play crucial roles in determining individual and societal happiness. Studies suggest that higher income is correlated with increased happiness, particularly in low-income groups where basic needs are not met

[9]

. However, beyond a certain threshold, the marginal utility of income on happiness diminishes, indicating that factors beyond material wealth contribute significantly to well-being

[18]

. Furthermore, the concept of "relative income" suggests that happiness is not just a function of absolute earnings but also of how one's income compares to peers

[4]

Wealth accumulation provides financial security and access to opportunities, further enhancing subjective well-being. However, excessive materialism has been linked to lower life satisfaction and psychological stress

[7]

. Thus, while income and wealth contribute to happiness, their effects are nuanced and influenced by social and psychological factors.

3.2. Employment, Job Security, and Labour Market Dynamics

Employment status is a fundamental determinant of happiness. Studies indicate that unemployed individuals report significantly lower life satisfaction than their employed counterparts, even when controlling for income

[35]

. Job security also plays a critical role; individuals with stable employment exhibit higher levels of well-being compared to those in precarious or temporary jobs

[5]

Beyond job stability, labor market conditions influence happiness through work-life balance, job satisfaction, and workplace environment. Jobs that provide autonomy, purpose, and social interactions contribute positively to happiness, whereas stressful and monotonous work environments negatively impact well-being

[13]

. Therefore, labor policies promoting fair wages, job security, and healthy working conditions are essential in enhancing happiness at both individual and societal levels.

3.3. Income Inequality and Perceived Social Justice

Income inequality has a profound impact on happiness, with evidence suggesting that societies with higher levels of inequality tend to report lower overall well-being

[34]

. The psychological effects of inequality stem from perceived fairness and social justice; when individuals believe that economic disparities result from meritocratic principles, the negative impact on happiness is less pronounced

[1]

However, when inequality is perceived as unjust or stemming from systemic discrimination, it leads to social unrest, lower trust in institutions, and decreased overall happiness

[14]

. Policies aimed at reducing extreme inequality, such as progressive taxation and social welfare programs, can mitigate these adverse effects and promote a more equitable distribution of happiness.

3.4. The Role of Public Policy and Social Welfare Systems

Public policy plays a crucial role in shaping economic conditions that influence happiness. Governments that implement effective social welfare systems tend to have higher levels of well-being among their populations

[16]

. Policies related to healthcare, education, unemployment benefits, and pensions contribute significantly to life satisfaction by providing financial security and access to essential services

[11]

Additionally, public policies that promote work-life balance, affordable housing, and mental health support enhance overall well-being

[30, 31]

. The Scandinavian model, characterized by comprehensive social safety nets and equitable economic policies, serves as an example of how state intervention can lead to higher happiness levels

[24]

. Therefore, well-designed public policies can significantly improve societal happiness by addressing economic insecurities and fostering inclusive growth.

4. Empirical Evidence and Case Studies

Empirical research has provided diverse perspectives on the complex relationship between economic growth and happiness. While some studies highlight a positive correlation between economic prosperity and well-being, others reveal a paradox where increased wealth does not necessarily translate into greater happiness. This chapter examines three key case studies: United States of America, the Nordic countries, and developing economies, to explore the nuances of this relationship.

4.1. The United States: Economic Growth and the Happiness Stagnation Puzzle

Despite significant economic growth in the post-World War II period, the United States has experienced what scholars describe as the “happiness stagnation puzzle”. While GDP per capita has steadily risen, subjective well-being measures have remained largely unchanged

[9]

. Richard Easterlin’s seminal work, now known as the Easterlin Paradox, posits that beyond a certain threshold, additional income does not significantly increase happiness

[8]

Several factors contribute to this stagnation. First, relative income effects suggest that individuals assess their well-being in comparison to others rather than in absolute terms

[12]

. Rising income inequality in the United States may have exacerbated this effect, leading to dissatisfaction among lower-income groups

[34]

. Second, the diminishing marginal utility of income implies that once basic needs are met, further economic gains yield diminishing returns on happiness

[17]

. Third, factors such as job insecurity, increased working hours, and declining social capital contribute to the stagnation of well-being despite rising incomes

[25]

4.2. The Nordic Model: High Social Welfare and Well-being Outcomes

Nordic countries - Finland, Sweden, Norway, Denmark, and Iceland - consistently rank among the happiest nations globally, despite high taxation and income redistribution

[15]

. The Nordic model, characterized by extensive welfare provisions, universal healthcare, and strong labour market protections, appears to foster well-being more effectively than GDP growth alone

[11]

Studies attribute the high happiness levels in these countries to strong social trust, economic security, and work-life balance

[15]

. Moreover, income equality reduces status competition, thereby minimizing the negative effects of relative income comparisons

[34]

Critics argue that the Nordic model may not be universally applicable due to cultural and historical factors that facilitate its success. Nonetheless, its emphasis on social cohesion and well-being over mere economic expansion provides valuable insights into the relationship between economic policy and happiness.

4.3. Developing Economies: Economic Growth as a Pathway to Happiness

In developing economies, economic growth is often associated with improvements in well-being, especially during the early stages of development. Rising income levels typically facilitate greater access to healthcare, education, clean water, and infrastructure - factors that significantly contribute to life satisfaction and lower rates of material deprivation

[29]

. However, the relationship between economic growth and happiness is complex and non-linear. While initial economic progress tends to enhance well-being, sustained growth does not always translate to increased happiness. Structural issues such as corruption, inequality, social fragmentation, and environmental degradation can erode the positive effects of rising incomes

[10]

China provides a telling example. The country’s rapid industrialization and economic expansion over the past few decades have lifted hundreds of millions out of poverty and significantly increased average incomes. However, these gains have come with substantial trade-offs. Urbanization has led to increased job competition, long working hours, and heightened levels of stress among city dwellers. Moreover, rising inequality and declining social trust - along with environmental challenges such as air pollution - have contributed to a paradox where material conditions improve, but subjective well-being stagnates or even declines in some areas

[19]

India offers another compelling case that highlights both the potential and the pitfalls of economic growth in relation to happiness. Over the past three decades, India has experienced notable economic expansion, emerging as one of the world’s fastest-growing major economies. This growth has helped reduce poverty rates and expand access to consumer goods and services. Yet, persistent income inequality, inadequate public services, and job insecurity remain pressing concerns. Despite increasing GDP, studies have shown that subjective well-being in India has not consistently risen. In some surveys, overall happiness has even declined, particularly among lower-income groups, due to rising aspirations not matched by opportunities, as well as a perceived erosion of community ties and traditional social safety nets. Furthermore, environmental degradation, especially in urban centers like Delhi, has had a tangible negative impact on quality of life.

Brazil presents yet another example of the mixed outcomes of development. During the early 2000s, Brazil saw significant economic growth accompanied by progressive social programs like Bolsa Família, which helped reduce extreme poverty and improve access to health and education. For a period, these efforts led to modest increases in reported life satisfaction. However, economic stagnation and political instability in the following decade reversed many of these gains. Rising unemployment, inflation, and concerns about corruption contributed to a sense of insecurity and disillusionment. Additionally, high levels of violence and persistent regional disparities continue to undermine well-being, highlighting the fragility of happiness gains in contexts where economic and social progress is not sustained.

In contrast, Bhutan offers a unique and instructive perspective by explicitly prioritizing Gross National Happiness (GNH) over GDP. This alternative development model integrates economic indicators with cultural preservation, environmental sustainability, good governance, and psychological well-being. Bhutan's approach suggests that policy frameworks oriented toward holistic well-being, rather than purely economic metrics, can produce a more balanced and sustainable form of development. While Bhutan’s context is specific, it underscores the potential benefits of integrating multidimensional indicators of happiness into national planning, even in resource-constrained settings.

Overall, the experiences of China, India, Brazil, and Bhutan illustrate that while economic growth can be a powerful tool for improving human welfare in developing economies, it must be accompanied by deliberate policies addressing inequality, social cohesion, environmental sustainability, and mental health in order to genuinely enhance well-being.

5. Policy Implications for Enhancing Well-being

Economic policies play a crucial role in shaping the well-being of individuals and societies. While traditional economic policy focuses on growth, employment, and inflation control, a growing body of research suggests that well-being should be a central objective of economic decision-making. This chapter explores key policy measures that can enhance happiness by addressing income distribution, employment conditions, social services, environmental concerns, and economic stability.

5.1. Economic Policies for Sustainable Happiness

Sustainable happiness depends on the interplay between economic growth, social equity, and environmental integrity. Policies that narrowly target GDP growth without addressing broader indicators of well-being risk neglecting essential components of a flourishing society. A pivotal policy tool is progressive taxation, which reduces income inequality while funding public goods such as healthcare, education, and infrastructure - critical drivers of collective well-being

[31]

Equally important are labor market regulations that promote work-life balance. Paid parental leave, shorter workweeks, and flexible work arrangements reduce stress and boost job satisfaction

[24]

, while fair wages and job security diminish economic precarity

[20]

. These measures not only support individual well-being but also contribute to broader societal stability.

Environmental sustainability is another cornerstone of long-term happiness. Green policies that promote clean energy, reduce emissions, and protect natural resources contribute to well-being by improving public health, reducing climate-related risks, and fostering intergenerational responsibility

[6]

. Urban planning efforts that create green spaces and walk able environments further support these goals, enhancing both environmental quality and social interaction.

Social capital also plays a significant role. Policies that encourage civic engagement, volunteering, and community cohesion enhance trust and mutual support. These intangibles yet powerful factors are consistently linked to higher levels of happiness across populations.

5.2. Social Safety Nets and Redistribution Strategies

Robust social safety nets are essential for protecting individuals from the negative psychological effects of economic insecurity. Welfare programs that include unemployment benefits, universal healthcare, and social security reduce poverty-related stress and improve life satisfaction

[11]

. Among redistribution strategies, universal basic income (UBI) has emerged as a promising policy. Evidence suggests that well-designed UBI schemes can increase economic stability, reduce mental health strain, and promote subjective well-being

[13, 33]

Equitable access to education and healthcare is another fundamental aspect of redistribution. Governments that invest in these areas not only enhance individual capabilities but also foster social mobility and cohesion

[28]

. Reducing disparities in opportunity creates more stable, harmonious societies - an essential condition for widespread well-being

[34]

5.3. Behavioral Interventions and Public Policy

Behavioral economics offers valuable tools for designing policies that support well-being by aligning with how people actually make decisions. Nudges - subtle changes in choice architecture - can guide individuals toward healthier, more financially secure, and environmentally sustainable behaviors

[32]

. For example, default enrollment in retirement plans has improved savings rates and long-term financial health

[22]

. Similarly, health campaigns that emphasize positive outcomes have effectively encouraged exercise, smoking cessation, and better diets

[21]

Social comparison is another powerful lever. Policies that make peer behavior visible - such as energy use or charitable giving - an encourage alignment with prosocial norms. Energy conservation programs that show household comparisons, for instance, have successfully reduced consumption and increased environmental responsibility

[2, 27]

Incorporating behavioral insights into public policy enables governments to craft environments that promote well-being through informed decision-making. By accounting for cognitive biases and psychological tendencies, policymakers can better design interventions that resonate with real human behavior.

In addition, social comparison strategies can be leveraged to improve happiness. Policies that provide transparency on income disparities, environmental behaviors, or community participation encourage individuals to align their behaviors with societal well-being goals

[27]

. For instance, energy conservation programs that display peer comparisons have been shown to reduce household energy consumption, benefiting both individuals and the environment

[2]

. Overall, integrating behavioural insights into public policy enables governments to create environments that facilitate happiness-enhancing choices. By designing policies that consider cognitive biases and decision-making processes, policymakers can ensure that economic interventions align with psychological well-being.

In conclusion, integrating happiness research into economic policymaking can lead to more effective strategies for improving well-being. By addressing income security, work-life balance, public services, social capital, and environmental sustainability, governments can create an economic framework that prioritizes human flourishing alongside economic growth.

6. Conclusion

This study has explored the complex interconnections between economics and happiness, revealing that well-being is a multidimensional construct shaped by far more than income or consumption alone. While economic indicators remain useful, they provide an incomplete picture of what constitutes a fulfilling life. Sustainable happiness arises from a confluence of factors - material, psychological, and social - that must be acknowledged and addressed in concert through thoughtful policy design.

The evidence presented throughout this research challenges the assumption that economic growth alone leads to greater well-being. Although financial security is a necessary foundation, it is not a sufficient condition for lasting happiness. Beyond a certain threshold, the marginal returns of income on well-being diminish, and other determinants - such as social equity, meaningful employment, mental health, and civic trust - grow increasingly significant. These insights point to the limitations of conventional economic frameworks and underscore the need for broader evaluative metrics that capture the true drivers of human flourishing.

The implications for public policy are profound. Policymakers must shift focus from narrow GDP-centric models toward strategies that promote inclusive, equitable, and psychologically enriching societies. This includes designing interventions that reduce inequality, improve the quality and security of employment, invest in public goods like healthcare and education, and foster environments that support mental and emotional well-being. Additionally, incorporating the insights of behavioral economics - such as the importance of social comparisons, adaptation, and cognitive biases - can help fine-tune these interventions for greater effectiveness and relevance.

Adopting a multidimensional approach to well-being also calls for intersect oral collaboration. Economists, sociologists, psychologists, and public health experts must work together to design and implement policies that reflect the full range of human needs and aspirations. This kind of integrated policy thinking is already visible in alternative development models, such as Bhutan’s Gross National Happiness framework, which prioritize human well-being over mere economic expansion.

Ultimately, recognizing happiness as a legitimate and measurable policy objective requires a reimagining of both economic success and social progress. It invites governments and institutions to center human well-being in decision-making processes, not as an ancillary concern, but as a core purpose. By embracing this shift, societies can better align their economic systems with the deeper values that sustain meaningful and satisfying lives.

In sum, this study affirms that sustainable happiness requires multidimensional policy interventions that integrate economic, psychological, and social well-being metrics. Only through such comprehensive approaches can we create systems that truly reflect and support the richness of the human experience.

7. Future Research Directions: Building a Happier Economic Paradigm

This inquiry has underscored the profound and multifaceted relationship between economic conditions and human happiness. Yet, as with any complex field of study, many questions remain unanswered. The interplay between economic systems and subjective well-being is shaped by evolving technologies, shifting cultural norms, and global challenges - each demanding further scientific exploration. To build a more holistic economic model that prioritizes human flourishing, future research should address several pivotal areas.

Longitudinal Insights into Economic and Emotional Trajectories

Capturing the true impact of economic changes on happiness requires more than cross-sectional snapshots; it calls for robust, longitudinal investigations. By leveraging panel data and advanced econometric methodologies, future studies can trace how life events, policy shifts, and macroeconomic trends influence well-being over time. This approach is vital to distinguish between fleeting reactions and persistent effects, offering deeper causal understanding of the economic roots of happiness.

Cross-Cultural and Cross-System Comparisons

Happiness is shaped not only by material conditions but also by cultural values and societal structures. Investigating how economic determinants of well-being vary across countries, cultures, and governance models will illuminate what makes economic policies effective in specific contexts. Research should examine how differing levels of income inequality, employment systems, and welfare provisions interact with cultural attitudes to influence well-being.

Technological Disruption and the Future of Work-Life Balance

The integration of digital technologies, automation, and artificial intelligence is transforming labour markets - and with them, the experience of work and life. Future research must examine the dual-edged nature of technological progress: its ability to generate economic gains and flexible opportunities, alongside its potential to erode job security and life satisfaction. Investigating interventions such as universal basic income, remote work, and lifelong learning programs will be the key to aligning technological innovation with human well-being.

Climate Change as a Determinant of Well-Being

Economic consequences of climate change - ranging from resource scarcity to displacement - has direct implications for global happiness. Future economic studies should evaluate the psychological and social toll of environmental degradation and explore whether sustainable economic transitions can simultaneously support well-being. This includes examining how green investments, disaster preparedness, and climate-resilient infrastructure affect happiness, particularly in at-risk populations.

Advancing Beyond GDP: New Metrics for a New Era

GDP, while useful, remains an incomplete proxy for societal progress. As our understanding of well-being deepens, so must our tools for measuring it. Future research should aim to refine and mainstream alternative indicators - such as the Human Development Index or Gross National Happiness - that incorporate subjective well-being and life satisfaction. These metrics can serve as valuable instruments for policymakers seeking to design economies that reflect what truly matters to people.

As we face global economic transformations, environmental upheavals, and rapid technological change, the need for an economic framework centred on happiness has never been more urgent. The future of research in this domain lies in forging a clearer, evidence-based understanding of how economic policies and conditions shape our lives - not just in terms of wealth, but in terms of meaning, connection, and contentment. By expanding the scientific boundaries of economic inquiry, scholars and policymakers alike can help pave the way toward more equitable, resilient, and joyful societies.

Abbreviations

HDI	Human Development Index
GNH	Gross National Happiness
GDP	Gross Domestic Product
UBI	Universal Basic Income

Author Contributions

Marja-Liisa Tenhunen is the sole author. The author read and approved the final manuscript.

Conflicts of Interest

The author declares no conflicts of interest.

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Tenhunen, M. (2025). Happiness from an Economic Perspective: A Scientific Inquiry. Economics, 14(2), 45-52. https://doi.org/10.11648/j.eco.20251402.13

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Tenhunen M. Happiness from an Economic Perspective: A Scientific Inquiry. Economics. 2025;14(2):45-52. doi: 10.11648/j.eco.20251402.13

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@article{10.11648/j.eco.20251402.13,
  author = {Marja-Liisa Tenhunen},
  title = {Happiness from an Economic Perspective: A Scientific Inquiry
},
  journal = {Economics},
  volume = {14},
  number = {2},
  pages = {45-52},
  doi = {10.11648/j.eco.20251402.13},
  url = {https://doi.org/10.11648/j.eco.20251402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20251402.13},
  abstract = {Happiness, long considered a subjective and intangible concept, has become an increasingly prominent subject within the field of economics. This study aims to investigate happiness from an economic perspective, offering a comprehensive analysis of how economic variables influence individual and collective well-being. Using comparative case studies and empirical data analysis, this study explores the multifaceted relationship between income levels, wealth distribution, economic growth, and subjective well-being. Drawing on both empirical data and established theoretical frameworks, the research examines how relative income - rather than absolute wealth - plays a significant role in shaping personal satisfaction, as individuals often assess their happiness in comparison to others within their socioeconomic environment. Additionally, the study delves into the effects of labor market conditions, such as job stability, wage fairness, and unemployment, as well as the importance of social safety nets and public goods in enhancing societal happiness. Evidence suggests that while rising GDP and economic expansion can improve living standards, they do not automatically translate into increased happiness for all. In fact, high levels of inequality and job insecurity can offset the potential benefits of economic growth. The analysis underscores the importance of adopting a broader set of indicators beyond traditional economic measures to better capture the well-being of populations. The study advocates for the integration of happiness and well-being metrics into policy frameworks, encouraging governments to consider long-term quality of life when shaping economic agendas. Ultimately, the findings highlight the potential for economics not only to understand wealth generation, but also to promote human flourishing through more equitable and sustainable development strategies.
},
 year = {2025}
}

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TY  - JOUR
T1  - Happiness from an Economic Perspective: A Scientific Inquiry

AU  - Marja-Liisa Tenhunen
Y1  - 2025/06/23
PY  - 2025
N1  - https://doi.org/10.11648/j.eco.20251402.13
DO  - 10.11648/j.eco.20251402.13
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 45
EP  - 52
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20251402.13
AB  - Happiness, long considered a subjective and intangible concept, has become an increasingly prominent subject within the field of economics. This study aims to investigate happiness from an economic perspective, offering a comprehensive analysis of how economic variables influence individual and collective well-being. Using comparative case studies and empirical data analysis, this study explores the multifaceted relationship between income levels, wealth distribution, economic growth, and subjective well-being. Drawing on both empirical data and established theoretical frameworks, the research examines how relative income - rather than absolute wealth - plays a significant role in shaping personal satisfaction, as individuals often assess their happiness in comparison to others within their socioeconomic environment. Additionally, the study delves into the effects of labor market conditions, such as job stability, wage fairness, and unemployment, as well as the importance of social safety nets and public goods in enhancing societal happiness. Evidence suggests that while rising GDP and economic expansion can improve living standards, they do not automatically translate into increased happiness for all. In fact, high levels of inequality and job insecurity can offset the potential benefits of economic growth. The analysis underscores the importance of adopting a broader set of indicators beyond traditional economic measures to better capture the well-being of populations. The study advocates for the integration of happiness and well-being metrics into policy frameworks, encouraging governments to consider long-term quality of life when shaping economic agendas. Ultimately, the findings highlight the potential for economics not only to understand wealth generation, but also to promote human flourishing through more equitable and sustainable development strategies.

VL  - 14
IS  - 2
ER  -

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Author Information

Marja-Liisa Tenhunen

Dimitrie Cantemir Christian University, Bucharest, Romania

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http://orcid.org/0000-0002-4952-955X

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APA Style

Tenhunen, M. (2025). Happiness from an Economic Perspective: A Scientific Inquiry. Economics, 14(2), 45-52. https://doi.org/10.11648/j.eco.20251402.13

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ACS Style

Tenhunen, M. Happiness from an Economic Perspective: A Scientific Inquiry. Economics. 2025, 14(2), 45-52. doi: 10.11648/j.eco.20251402.13

Copy | Download

AMA Style

Tenhunen M. Happiness from an Economic Perspective: A Scientific Inquiry. Economics. 2025;14(2):45-52. doi: 10.11648/j.eco.20251402.13

Copy | Download

@article{10.11648/j.eco.20251402.13,
  author = {Marja-Liisa Tenhunen},
  title = {Happiness from an Economic Perspective: A Scientific Inquiry
},
  journal = {Economics},
  volume = {14},
  number = {2},
  pages = {45-52},
  doi = {10.11648/j.eco.20251402.13},
  url = {https://doi.org/10.11648/j.eco.20251402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20251402.13},
  abstract = {Happiness, long considered a subjective and intangible concept, has become an increasingly prominent subject within the field of economics. This study aims to investigate happiness from an economic perspective, offering a comprehensive analysis of how economic variables influence individual and collective well-being. Using comparative case studies and empirical data analysis, this study explores the multifaceted relationship between income levels, wealth distribution, economic growth, and subjective well-being. Drawing on both empirical data and established theoretical frameworks, the research examines how relative income - rather than absolute wealth - plays a significant role in shaping personal satisfaction, as individuals often assess their happiness in comparison to others within their socioeconomic environment. Additionally, the study delves into the effects of labor market conditions, such as job stability, wage fairness, and unemployment, as well as the importance of social safety nets and public goods in enhancing societal happiness. Evidence suggests that while rising GDP and economic expansion can improve living standards, they do not automatically translate into increased happiness for all. In fact, high levels of inequality and job insecurity can offset the potential benefits of economic growth. The analysis underscores the importance of adopting a broader set of indicators beyond traditional economic measures to better capture the well-being of populations. The study advocates for the integration of happiness and well-being metrics into policy frameworks, encouraging governments to consider long-term quality of life when shaping economic agendas. Ultimately, the findings highlight the potential for economics not only to understand wealth generation, but also to promote human flourishing through more equitable and sustainable development strategies.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Happiness from an Economic Perspective: A Scientific Inquiry

AU  - Marja-Liisa Tenhunen
Y1  - 2025/06/23
PY  - 2025
N1  - https://doi.org/10.11648/j.eco.20251402.13
DO  - 10.11648/j.eco.20251402.13
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 45
EP  - 52
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20251402.13
AB  - Happiness, long considered a subjective and intangible concept, has become an increasingly prominent subject within the field of economics. This study aims to investigate happiness from an economic perspective, offering a comprehensive analysis of how economic variables influence individual and collective well-being. Using comparative case studies and empirical data analysis, this study explores the multifaceted relationship between income levels, wealth distribution, economic growth, and subjective well-being. Drawing on both empirical data and established theoretical frameworks, the research examines how relative income - rather than absolute wealth - plays a significant role in shaping personal satisfaction, as individuals often assess their happiness in comparison to others within their socioeconomic environment. Additionally, the study delves into the effects of labor market conditions, such as job stability, wage fairness, and unemployment, as well as the importance of social safety nets and public goods in enhancing societal happiness. Evidence suggests that while rising GDP and economic expansion can improve living standards, they do not automatically translate into increased happiness for all. In fact, high levels of inequality and job insecurity can offset the potential benefits of economic growth. The analysis underscores the importance of adopting a broader set of indicators beyond traditional economic measures to better capture the well-being of populations. The study advocates for the integration of happiness and well-being metrics into policy frameworks, encouraging governments to consider long-term quality of life when shaping economic agendas. Ultimately, the findings highlight the potential for economics not only to understand wealth generation, but also to promote human flourishing through more equitable and sustainable development strategies.

VL  - 14
IS  - 2
ER  -

Copy | Download