Measures of GROSS NATIONAL HAPPINESS Ruut Veenhoven Erasmus

Measures of GROSS NATIONAL HAPPINESS Ruut Veenhoven Erasmus University Rotterdam Presentation at OECD World Forum on Statistics, Knowledge and Policy Istanbul, Turkey June 27 -30 Roundtable on Measuring Happiness and Making Policy

Measures of GNH 1. The ‘greatest happiness principle’ 2. What is ‘happiness’? 3. Can happiness be measured? 4. Measures of happiness in nations 5. • • Average Happiness Happy Life Years Inequality of Happiness Inequality Adjusted Happiness • % unhappy Relevance for policy

Greatest Happiness Principle

Greatest happiness principle Philosophy • Morally good is what works out well Morality 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 happiness Standard utilitarianism • Focus on difference in happiness Egalitarian utilitarianism • Focus on the least happy Negative utilitarianism

What is ‘happiness’?

What is ‘happiness’? Four qualities of life

What is ‘happiness’? Four qualities of life

What is ‘happiness’? Four kinds of satisfaction

What is ‘happiness’? Four kinds of 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 Dissatisfied 3 4 5 6 7 8 9 10 Satisfied

Happiness in Switzerland 2000

Happiness in Zimbabwe 2000

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 2000 Change 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 2000 Change 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 2000 Change 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 2000 Change 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 Political freedom Rule of law State welfare Income equality Tolerance R 2 +. 61 +. 54 +. 58 +. 22 +. 18 +. 68. 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. n