Why Happiness Hasn't Increased

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Despite vast increases in income per capita, longer holidays, better health care, and dramatic technological increases over the past fifty years, the overall happiness of people in many countries has not increased much, if at all. Table 1, below, shows that the percentages of people claiming to be very happy, pretty happy, and not too happy have barely changed at all from 1975 to 1996. Richard Layard points out several reasons as to why this is the case.


Income and Happiness

Income plays a vital role in determining the happiness of people. Studies show that 41% of people in the top income quarter consider themselves very happy, while only 26% in the bottom income quarter feel the same. As Table 1 indicates, the happiness of people in 1996 is essentially the same as in 1975. This is shown even though per capita income has steadily increased since over that time period.

Habit and Rivalry

Performance-related Pay

Security

Values