Measures ofGROSS NATIONAL HAPPINESS

Ruut VeenhovenErasmus University Rotterdam

Presentation at OECD World Forum on

Statistics, Knowledge and PolicyIstanbul, Turkey June 27-30

Roundtable on Measuring Happiness and Making Policy

Measures of GNH1. The ‘greatest happiness principle’

2. What is ‘happiness’?

3. Can happiness be measured?

4. Measures of happiness in nations• Average Happiness • Happy Life Years• Inequality of Happiness• Inequality Adjusted Happiness• % unhappy

5. Relevance for policy

Greatest Happiness Principle

Greatest happiness principle

Philosophy

• Morally good is what works out wellMorality appears in consequences

• Most moral is what produces ‘greatest happiness for greatest number’

• This philosophy is called ‘utilitarianism’Applied on public choice: ‘rule utilitarianism’

Greatest happiness principle

Variants of rule-utilitarianism

• Focus on average happinessStandard utilitarianism

• Focus on difference in happinessEgalitarian utilitarianism

• Focus on the least happyNegative utilitarianism

What is ‘happiness’?

What is ‘happiness’?

Four qualities of life

external

internal

chances

outcomes

What is ‘happiness’?

Four qualities of life

external

internal

chances

Livability

Life-ability

outcomes

Utility

Satisfaction

What is ‘happiness’?Four kinds of satisfaction

Passing

Enduring

Part

Whole

What is ‘happiness’?Four kinds of satisfaction

Passing

Enduring

Part

Pleasure

Domain

satisfaction

Whole

Top experience

Happiness

(life-satisfaction)

Can happiness be measured?

Measurement of happiness

Example of a survey question

Taking all together, how satisfied or dissatisfied are you with your life as a whole these days?

1 2 3 4 5 6 7 8 9 10

Dissatisfied Satisfied

Happiness in Switzerland 2000

DISSATISFIED

2 3 4 5 6 7 8 9 SATISFIED

HOW SATISFIED ARE YOU WITH YOUR LIFE

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

Pe

rce

nt

COUNTRY/REGION: SWITZERLAND

Happiness in Zimbabwe 2000

DISSATISFIED

2 3 4 5 6 7 8 9 SATISFIED

HOW SATISFIED ARE YOU WITH YOUR LIFE

0,0%

10,0%

20,0%

30,0%

Perce

nt

COUNTRY/REGION: ZIMBABWE

Measures of happiness in nations

Measures of happiness in nations

• Average Happiness

• Happy Life Years

• Inequality of Happiness

• Inequality Adjusted Happiness

• % Unhappy

Measures of happiness in nations

Link with variants of utilitarianism

Standard utilitarianism• Average Happiness• Happy Life Years

Egalitarian utilitarianism• Inequality of Happiness• Inequality Adjusted Happiness

Negative utilitarianism• % unhappy

Measures of happiness in nations

Average Happiness

Average 0-10 happiness in 2000

• Switzerland 8,1

• USA 7,4

• UK 7,1

• Italy 6,9

• France 6,5

• Japan 6,2

• Russia 4,4

• Zimbabwe 3.3

Average 0-10 happiness in 2000Change since 1973

• Switzerland ? 8,1

• USA + 0,34 7,4

• UK + 0,06 7,1

• Italy + 0,96 6,9

• France + 0,28 6,5

• Japan + 0,00 6,2

• Russia ? 4,4

• Zimbabwe ? 3.3

Measures of happiness in nations

Happy Life Years

Measures of happiness in nations

Happy Life Years

Meaning:How long and happy people live in a country

Computation:Life-expectancy x 0-1 happiness

Example Switzerland:- Life-expectancy = 79 years- Average 0-10 happiness = 8,1- HLY = 79 x 0,81 = 64

Happy Life Years in 2000

• Switzerland 63,9

• USA 57,0

• UK 55,2

• Italy 54,2

• France 51,4

• Japan 50,4

• Russia 29,2

• Zimbabwe 11,5

Happy Life Years in 2000Change since 1973• Switzerland ? 63,9

• USA + 5,2 57,0

• UK + 4,1 55,2

• Italy + 11,5 54,2

• France + 6,0 51,4

• Japan + 4,4 50,4

• Russia ? 29,2

• Zimbabwe ? 11,5

Measures of happiness in nations

Inequality of Happiness

SD 0-10 happiness in 2000

• Switzerland 1,7

• USA 2,1

• UK 2,1

• Italy 2,1

• France 2,2

• Japan 2,1

• Russia 2,6

• Zimbabwe 3.0

SD 0-10 happiness in 2000Change since 1973

• Switzerland ? 1,7

• USA - 0,03 2,1

• UK - 0,16 2,1

• Italy - 0,37 2,1

• France - 0,09 2,2

• Japan + 0,09 2,1

• Russia ? 2,6

• Zimbabwe ? 3.0

Measures of happiness in nations

Inequality Adjusted Happiness

0-100 IAH in nations in 2000

• Switzerland 75

• USA 67

• UK 64

• Italy 62

• France 58

• Japan 55

• Russia 36

• Zimbabwe 23

0-100 IAH in nations in 2000Change since 1973

• Switzerland ? 75

• USA + 5,2 67

• UK + 4,1 64

• Italy + 10,5 62

• France + 6,0 58

• Japan - 4,4 55

• Russia ? 36

• Zimbabwe ? 23

Measures of happiness in nations

% Unhappy

% unhappy in 2000 (below 5 on 1-10)

• Switzerland 4,1

• USA 5,9

• UK 7,9

• Italy 9,6

• France 11,2

• Japan 14,5

• Russia 45,5

• Zimbabwe 56,7

Happiness and kind of society

Societal correlates of happiness in 95 nations

Average happiness

• Economic affluence +.61• Political freedom +.54• Rule of law +.58• State welfare +.22• Income equality +.18• Tolerance +.68

R2 .73

Societal correlates of happiness in 95 nations

Explained variance

• Average happiness 73%

• Happy Life Years 81%

• Inequality of happiness 51%

• Inequality-Adjusted happiness 74%

• % Unhappy 77%

Societal correlates of happiness in 95 nations

Similarity in correlations

• Difference in correlation with income-inequality– No correlation with Average happiness– Some correlation with SD-happiness

• All other correlations similar

Same policies fit all variants of utilitarianism

World Database of Happiness

http://worlddatabaseofhappiness.eur.nl