The Center for Global Development and The Paul H. Nitze School of Advanced International Studies present
a Massachusetts Avenue Development Seminar (MADS)* on
Subjective Well-Being, Income, Economic Development, and Growth
Featuring
Justin Wolfers
University of Pennsylvania & Brookings Institution
With discussant
Jishnu Das
Development Economics Group, World Bank
Wednesday, January 12, 2011
12:00pm--1:30pm
**Please bring your lunch--drinks and dessert provided**
at
Center for Global Development
1800 Massachusetts Avenue, NW, Third Floor, Washington, DC
*Please bring photo identification*
Paper Abstract: We explore the relationships between subjective well-being and income, as seen across individuals within a given country, between countries in a given year, and as a country grows through time. We show that richer individuals in a given country are more satisfied with their lives than are poorer individuals, and establish that this relationship is similar in most countries around the world. Turning to the relationship between countries, we show that average life satisfaction is higher in countries with greater GDP per capita. The magnitude of the satisfaction-income gradient is roughly the same whether we compare individuals or countries, suggesting that absolute income plays an important role in influencing wellbeing.
Finally, studying changes in satisfaction over time, we find that as countries experience economic growth, their citizens’ life satisfaction typically grows, and that those countries experiencing more rapid economic growth also tend to experience more rapid growth in life satisfaction. These results together suggest that measured subjective well-being grows hand in hand with material living standards.
*The Massachusetts Ave. Development Seminar (MADS) is a ten year-old research seminar series that brings some of the world’s leading development scholars to discuss their new research and ideas. The presentations meet an academic standard of quality and are at times technical, but retain a focus on a mixed audience of researchers and policymakers.
