Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-26T18:10:05.611Z Has data issue: false hasContentIssue false

A happy choice: wellbeing as the goal of government

Published online by Cambridge University Press:  28 January 2020

PAUL FRIJTERS*
Affiliation:
London School of Economics, Department of Social Policy, London, UK
ANDREW E. CLARK
Affiliation:
Paris School of Economics, Paris, France and London School of Economics, Centre for Economic Performance, London, UK
CHRISTIAN KREKEL
Affiliation:
London School of Economics, Department of Psychological and Behavioural Science, London, UK and London School of Economics, Centre for Economic Performance, London, UK
RICHARD LAYARD
Affiliation:
London School of Economics, Centre for Economic Performance, London, UK
*
*Correspondence to: London School of Economics, Department of Social Policy, Houghton Street, LondonWC2A 2AE, UK. Email: [email protected]

Abstract

In this article, we lay out the basic case for wellbeing as the goal of government. We briefly review the history of this idea, which goes back to the ancient Greeks and was the acknowledged ideal of the Enlightenment. We then discuss possible measures on which a wellbeing orientation could be based, emphasizing the importance of acknowledging the political agency of citizens and thus their own evaluations of their lives. We then turn to practicalities and consequences: how would one actually set up wellbeing-oriented decision-making and what difference should we expect from current practice? We end by discussing the current barriers to the adoption of wellbeing as the goal of government, both in terms of what we need to know more about and where the ideological barriers lie.

Type
Articles
Copyright
Copyright © The Author(s) 2020. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abramovitz, M. (1959), ‘The Welfare Interpretation of Secular Trends in National Income and Product.’ In Abramovitz, M., Alchian, A., Arrow, Baran, A, P.. (eds), The Allocation of Economic Resources. Essays in Honor of Bernard Francis Haley, Stanford, CA: Stanford University Press.Google Scholar
Alcock, I., White, M. P., Wheeler, B. W., Fleming, L. E., and Depledge, M. H. (2014), ‘Longitudinal effects on mental health of moving to greener and less green urban areas’, Environmental Science and Technology, 48: 12471255.CrossRefGoogle ScholarPubMed
Banks, J., Nazroo, J., and Steptoe, A. (eds.), (2012), The dynamics of ageing: Evidence from the English Longitudinal Study of Ageing 2002–10 (Wave 5), London: Institute for Fiscal Studies.Google Scholar
Becchetti, L., Bachelet, M., and Pisani, F. (2019), ‘Poor eudaimonic subjective wellbeing as a mortality risk factor’, Economica Politica, 36: 245272.CrossRefGoogle Scholar
Bellet, C., and Frijters, P. (2019), ‘Big Data and Wellbeing.’ In Helliwell, J. F., Layard, R., and Sachs, J. (eds), World Happiness Report, New York: Sustainable Development Solutions Network.Google Scholar
Benjamin, D., Heffetz, O., Kimball, M., and Rees-Jones, A. (2012), ‘What Do You Think Would Make You Happier? What Do You Think You Would Choose?’, American Economic Review, 102: 20832110.CrossRefGoogle Scholar
Blanchflower, D. G., and Oswald, A. J. (2008), ‘Hypertension and Happiness across Nations’, Journal of Health Economics, 27: 218233.CrossRefGoogle ScholarPubMed
Broome, J. (2004), Weighing Lives, Oxford: Oxford University Press.CrossRefGoogle Scholar
Cantril, H. (1965), The Pattern of Human Concerns, New Brunswick, NJ: Rutgers University Press.Google Scholar
Cetre, S., Clark, A. E., and Senik, C. (2016), ‘Happy People Have Children: Choice and Self-Selection into Parenthood’, European Journal of Population, 32: 445473.CrossRefGoogle ScholarPubMed
Clark, A. E. (2001), ‘What Really Matters in a Job? Hedonic Measurement Using Quit Data’, Labour Economics, 8: 223242.CrossRefGoogle Scholar
Clark, A. E. (2003), ‘Unemployment as a Social Norm: Psychological Evidence from Panel Data’, Journal of Labor Economics, 21: 323351.CrossRefGoogle Scholar
Clark, A. E. (2016), ‘SWB as a Measure of Individual Wellbeing.’ In Adler, M., and Fleurbaey, M. (eds), Oxford Handbook of Wellbeing and Public Policy, Oxford: Oxford University Press.Google Scholar
Clark, A. E., and Jung, S. (2017), ‘Does Compulsory Education Really Increase Life Satisfaction?’, Inha University Institute of Business and Economic Research Discussion Paper, 2017-6.Google Scholar
Clark, A. E., and Oswald, A. (1994), ‘Unhappiness and Unemployment’, Economic Journal, 104: 648659.CrossRefGoogle Scholar
Clark, A. E., and Senik, C. (2011), ‘Is Happiness Different From Flourishing? Cross-Country Evidence from the ESS’, Revue d'Economie Politique, 121: 1734.CrossRefGoogle Scholar
Clark, A. E., Flèche, S., Layard, R., Powdthavee, N., and Ward, G. (2018), The Origins of Happiness, Princeton: Princeton University Press.Google Scholar
Clark, A. E., Frijters, P., and Shields, M. A. (2008), ‘Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles’, Journal of Economic Literature, 46: 95144.CrossRefGoogle Scholar
Clark, A. E., Georgellis, Y., and Sanfey, P. (1998), ‘Job Satisfaction, Wage Changes and Quits: Evidence from Germany’, Research in Labor Economics, 17: 95121.Google Scholar
Clark, A. E., Mavromaras, K., and Wei, Z. (2015), ‘Happy to Stay: Job Satisfaction and Retirement.’ Flinders University, mimeo.Google Scholar
Clark, D. M. (2018), ‘Realizing the Mass Public Benefit of Evidence-Based Psychological Therapies: The IAPT Program’, Annual Review of Clinical Psychology, 7: 159183.CrossRefGoogle Scholar
Cohen, S., Doyle, W., Turner, R., Alper, C., and Skoner, D. (2003), ‘Emotional style and susceptibility to the common cold’, Psychosomatic Medicine, 65: 652657.CrossRefGoogle ScholarPubMed
Cummins, R. A., McCabe, M. P., Romeo, Y., and Gullone, E. (1994), ‘The Comprehensive Quality of Life Scale: Instrument development and psychometric evaluation on tertiary staff and students’, Educational and Psychological Measurement, 54: 372382.CrossRefGoogle Scholar
Danner, D., Snowdon, D., and Friesen, W. (2001), ‘Positive Emotions in Early Life and Longevity: Findings from the Nun Study’, Journal of Personality and Social Psychology, 80: 804813.CrossRefGoogle ScholarPubMed
De Neve, J.-E., and Oswald, A. (2012), ‘Estimating the Influence of Life Satisfaction and Positive Affect on Later Income Using Sibling Fixed-Effects’, Proceedings of the National Academy of Science, 109: 1995319958.CrossRefGoogle ScholarPubMed
De Neve, J.-E., and Ward, G. (2017), ‘Happiness at work.’ In Helliwell, J. F., Layard, R., and Sachs, J. (eds), World Happiness Report, New York: Sustainable Development Solutions Network.Google Scholar
Di Tella, R., MacCulloch, R. J., and Oswald, A. J. (2001), ‘Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness’, American Economic Review, 91: 335341.CrossRefGoogle Scholar
Dickerson, A., Hole, R.A., and Munford, L. A. (2014), ‘The relationship between wellbeing and commuting revisited: Does the choice of methodology matter?Regional Science and Urban Economics, 49: 321329.CrossRefGoogle Scholar
Diener, E., and Chan, M. (2011), ‘Happy People Live Longer: Subjective Wellbeing Contributes to Health and Longevity’, Applied Psychology: Health and Wellbeing, 3: 143.Google Scholar
Diener, E., Emmons, R. A., Larsen, R. J., and Griffin, S. (1985), ‘The Satisfaction With Life Scale’, Journal of Personality Assessment, 49: 7175.CrossRefGoogle ScholarPubMed
Dolan, P., and Metcalfe, R. (2012), ‘Measuring subjective wellbeing: recommendations on measures for use by national governments’, Journal of Social Policy, 41: 409427.CrossRefGoogle Scholar
Dolan, P., Kavetsos, G., Krekel, C., Mavridis, D., Metcalfe, R., Senik, C., Szymanski, S., and Ziebarth, N. R. (2019), ‘Quantifying the intangible impact of the Olympics using subjective well-being data’, Journal of Public Economics, 177: 104043.CrossRefGoogle Scholar
Dolan, P., Layard, R., and Metcalfe, R. (2011), ‘Measuring Subjective Wellbeing for Public Policy: Recommendations on Measures’, CEP Special Papers, 23.Google Scholar
Duclos, J.-Y., Sahn, D., and Younger, S. (2006), ‘Robust Multidimensional Poverty Comparisons’, Economic Journal, 116: 943968.CrossRefGoogle Scholar
Duesenberry, J. (1949) Income, Saving, and the Theory of Consumer Behavior, Cambridge, MA: Harvard University Press.Google Scholar
Easterlin, R. A. (1974), ‘Does Economic Growth Improve the Human Lot? Some Empirical Evidence.’ In David, P. A., and Weber, M. W. (eds), Nations and Households in Economic Growth. Essays in Honor of Moses Abramovitz. New York: Academic Press.Google Scholar
Easterlin, R. A., McVey, L. A., Switek, M., Sawangfa, O., and Zweig, J. S. (2010), ‘The Happiness-Income Paradox Revisited’, Proceedings of the National Academy of Sciences, 107: 2246322468.CrossRefGoogle ScholarPubMed
Epel, E. (2009), ‘Telomeres in a Life-Span Perspective: A New “Psychobiomarker?Current Directions in Psychological Science, 18: 610.CrossRefGoogle Scholar
Ferrer-i-Carbonell, A., and Frijters, P. (2004), ‘How important is methodology for the estimates of the determinants of happiness?Economic Journal, 114: 641659.CrossRefGoogle Scholar
Freeman, R. B. (1978), ‘Job Satisfaction as an Economic Variable’, American Economic Review, 68: 135141.Google Scholar
Frijters, P., and Layard, R. (2018), ‘Direct wellbeing measurement and policy appraisal: a discussion paper.’ Centre for Economic Performance, LSE.Google Scholar
Frijters, P., Haisken-DeNew, J. P., and Shields, M. A. (2004), ‘Money does matter! Evidence from increasing real incomes and life satisfaction in East Germany following reunification’, American Economic Review, 94: 730774.CrossRefGoogle Scholar
Frijters, P., Johnston, D. W., and Shields, M. A. (2011), ‘Happiness Dynamics with Quarterly Life Event Data’, Scandinavian Journal of Economics, 113: 190211.CrossRefGoogle Scholar
Frijters, P., Johnston, D. W., and Shields, M. A. (2014), ‘Does Childhood Predict Adult Life Satisfaction? Evidence from British Cohort Surveys’, Economic Journal, 124: F688-F719.CrossRefGoogle Scholar
Frisch, R. (1964), ‘Dynamic Utility’, Econometrica, 32: 418424.CrossRefGoogle Scholar
Gardner, J., and Oswald, A. (2002), ‘Does Money Buy Happiness? A Longitudinal Study Using Data on Windfalls,’ Contribution to Royal Economic Society Annual Conference 2002.Google Scholar
Gardner, J., and Oswald, A.J. (2006), ‘Do Divorcing Couples Become Happier by Breaking Up?Journal of the Royal Statistical Society, 169: 319336.CrossRefGoogle Scholar
Gardner, J., and Oswald, A. J. (2007), ‘Money and Mental Wellbeing: A Longitudinal Study of Medium-Sized Lottery Wins’, Journal of Health Economics, 26: 49–60.CrossRefGoogle ScholarPubMed
Goldberg, D. P., Gater, R., Sartorius, N., Ustun, T. B., Piccinelli, M., Gureje, O., and Rutter, C. (1997), ‘The validity of two versions of the GHQ in the WHO study of mental illness in general health care’, Psychological Medicine, 27: 191197.CrossRefGoogle ScholarPubMed
Green, F. (2010), ‘Wellbeing, job satisfaction and labour mobility’, Labour Economics, 17: 897903.CrossRefGoogle Scholar
Hanslmaier, M. (2013), ‘Crime, fear and subjective wellbeing: How victimization and street crime affect fear and life satisfaction’, European Journal of Criminology, 10: 515533.CrossRefGoogle Scholar
Haushofer, J., and Fehr, E. (2014), ‘On the Psychology of Poverty’, Science, 344: 826867.CrossRefGoogle Scholar
Haushofer, J., and Shapiro, J. (2016), ‘The Short-term Impact of Unconditional Cash Transfers to the Poor: Experimental Evidence from Kenya’, Quarterly Journal of Economics, 131: 19732042.CrossRefGoogle Scholar
Helliwell, J. F., Layard, R., and Sachs, J. (2012), World Happiness Report, New York: The Earth Institute, Columbia University.Google Scholar
Johnston, D. W., Shields, M. A. and Suziedelyte, A. (2017), ‘Victimisation, wellbeing and compensation: Using panel data to estimate the costs of violent crime’, Economic Journal, 128: 15451569.CrossRefGoogle Scholar
Kahneman, D., and Deaton, A. (2010), ‘High income improves evaluation of life but not emotional well-being’, Proceedings of the National Academy of Sciences, 107: 1648916493.CrossRefGoogle Scholar
Kahneman, D., Krueger, A. B., Schkade, D. A., Schwarz, N., and Stone, A. A. (2004), ‘A survey method for characterizing daily life experience: The day reconstruction method’, Science, 306: 17761780.CrossRefGoogle ScholarPubMed
Kahneman, D., Wakker, P. P., and Sarin, R. (1997), ‘Back to Bentham? Explorations of experienced utility’, Quarterly Journal of Economics, 112: 375406.CrossRefGoogle Scholar
Krekel, C., and Zerrahn, A. (2017), ‘Does the presence of wind turbines have negative externalities for people in their surroundings? Evidence from wellbeing data’, Journal of Environmental Economics and Management, 82: 221238.CrossRefGoogle Scholar
Krekel, C., De Neve, J.-E., Fancourt, D., and Layard, R. (2020), ‘A Local Community Course that Raises Mental Wellbeing and Pro-Sociality’, CEP Discussion Paper.Google Scholar
Krekel, C., Kolbe, J., and Wuestemann, H. (2016), ‘The Greener, The Happier? The Effect of Urban Land Use on Residential Wellbeing’, Ecological Economics, 121: 117127.CrossRefGoogle Scholar
Krueger, A. B., and Schkade, D. (2008), ‘The Reliability of Subjective Wellbeing Measures’, Journal of Public Economics, 92: 18331845.CrossRefGoogle Scholar
Krueger, A. B., Kahneman, D., Schkade, D., Scharz, N., and Stone, A. (2009), ‘National Time Accounting: The Currency of Life.’ In Kruger, A. B. (ed), Measuring the Subjective Well-Being of Nations: National Accounts of Time Use and Well-Being, Chicago: Chicago University Press.CrossRefGoogle Scholar
Kuhn, P., Kooreman, P., Soetevent, A., and Kapteyn, A. (2011), ‘The Effects of Lottery Prizes on Winners and their Neighbors: Evidence from the Dutch Postcode Lottery’, American Economic Review, 101: 22262247.CrossRefGoogle Scholar
Layard, R. (1980), ‘Human Satisfactions and Public Policy’, Economic Journal, 90: 737750.CrossRefGoogle Scholar
Layard, R. (2009), ‘Wellbeing Measurement and Public Policy.’ In Kruger, A. B. (ed), Measuring the Subjective Well-Being of Nations: National Accounts of Time Use and Well-Being, Chicago: Chicago University Press.Google Scholar
Layard, R. (2010), ‘Measuring subjective wellbeing’, Science, 327: 534535.CrossRefGoogle Scholar
Layard, R., and Clark, D. M. (2014), Thrive: The Power of Evidence-Based Psychological Therapies, London: Penguin.Google Scholar
Layard, R., and O'Donnell, G. (2015), ‘How to make policy when happiness is the goal.’ In Helliwell, J. F., Layard, R., and Sachs, J. (eds), World Happiness Report, New York: Sustainable Development Solutions Network.Google Scholar
Levinson, A. (2012), ‘Valuing public goods using happiness data: The case of air quality’, Journal of Public Economics, 96: 869880.CrossRefGoogle Scholar
Lindqvist, E., Oestling, R., and Cesarini, D. (2018), ‘Long-run Effects of Lottery Wealth on Psychological Wellbeing’, NBER Working Paper, 24667.Google Scholar
Lordan, G., and McGuire, A. (2018), Healthy Minds. Interim Paper, London: Education Endowment Foundation.Google Scholar
Luechinger, S. (2009), ‘Valuing Air Quality Using the Life Satisfaction Approach’, Economic Journal, 119: 482515.CrossRefGoogle Scholar
Marx, K. (1880), Das Kapital: Der Produktionsprozess des Kapitals. Quote taken from Chapter 6: https://www.marxists.org/archive/marx/works/1847/wage-labour/ch06.htmGoogle Scholar
Mujcic, R., and Oswald, A. J. (2016), ‘Evolution of wellbeing and happiness after increases in consumption of fruit and vegetables’, American Journal of Public Health, 106: 15041510.CrossRefGoogle Scholar
Nettle, D. (2005), Happiness: The Science behind your smile, Oxford: Oxford University Press.Google Scholar
Oswald, A. J., and Wu, S. (2010), ‘Objective Confirmation of Subjective Measures of Human Wellbeing: Evidence from the USA’, Science, 327: 576579.CrossRefGoogle Scholar
Peasgood, T., Mukuria, C., Karimi, M., and Brazier, J. (2018), Eliciting preference weights for life satisfaction: A feasibility study. Mimeo.Google Scholar
Rawls, J. (1971), A Theory of Justice, Cambridge, MA: Harvard University Press.Google Scholar
Robbins, L. (1932), An Essay on the Nature and Significance of Economic Science, London: MacMillan.Google Scholar
Sandvik, E., Diener, E., and Seidlitz, L. (1993), ‘Subjective well-being: The convergence and stability of self-report and non-self-report measures’, Journal of Personality, 61: 317342.CrossRefGoogle Scholar
Schilbach, F., Schofield, H., and Mullainathan, S. (2016), ‘The Psychological Lives of the Poor’, American Economic Review, 106: 435440.CrossRefGoogle Scholar
Scitovsky, T. (1975), ‘Income and Happiness’, Acta Oeconomica, 15: 4553.Google Scholar
Seabright, P. (2004), The Company of Strangers: Princeton: Princeton University Press.Google Scholar
Sen, A. (1983) ‘Poor, relatively speaking’, Oxford Economic Papers, 35: 153169.CrossRefGoogle Scholar
Stern, N. (2007), The Economics of Climate Change: The Stern review. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Stiglitz, J. E., Sen, A., and Fitoussi, J. (2009), ‘Report by the Commission on the Measurement of Economic Performance and Social Progress’. CMEPSP available at: http://www.stiglitz-sen-fitoussi.fr/en/documents.htmGoogle Scholar
Stutzer, A., and Frey, B. S. (2006), ‘Does Marriage Make People Happy, Or Do Happy People Get Married?Journal of Socio-Economics, 35: 326347.CrossRefGoogle Scholar
Stutzer, A., and Frey, B. S. (2008), ‘Stress that doesn't pay: the commuting paradox’, Scandinavian Journal of Economics, 110: 339366.CrossRefGoogle Scholar
Urry, H. L., Nitschke, J. B., Dolski, I., Jackson, D. C., Dalton, K. M., Mueller, C. J., Rosenkranz, M. A., Ryff, C. D., Singer, B. H., and Davidson, R. J. (2004), ‘Making a Life Worth Living: Neural Correlates of Well-Being’, Psychological Science, 15: 367372.CrossRefGoogle ScholarPubMed
Van Praag, B. M. S., and Frijters, P. (1999), ‘The Measurement of Welfare and Wellbeing: The Leyden Approach.’ In Kahneman, D., Diener, E., and Schwarz, N. (eds), Wellbeing: The Foundations of Hedonic Psychology, New York: Russell Sage Foundation.Google Scholar
Veblen, T. (1899), The Theory of the Leisure Class, London: George Allen and Unwin.Google Scholar
Wansbeek, T., and Kapteyn, A. (1983), ‘Tackling Hard Questions by Means of Soft Methods: The Use of Individual Welfare Functions in Socio-Economic Policy’, Kyklos, 36: 249269.CrossRefGoogle Scholar
Ward, G. (2015), ‘Is Happiness a Predictor of Election Results?’, CEP Discussion Paper, 1343.Google Scholar
White, M. P., Alcock, I., Wheeler, B. W., and Depledge, M. H. (2013), ‘Would you be happier living in a greener urban area? A fixed-effects analysis of panel data’, Psychological Science, 24: 920928.CrossRefGoogle Scholar
World Happiness Report (2013), World Happiness Report. New York: UN Sustainable Development Solutions Network.Google Scholar
World Happiness Report (2018), World Happiness Report. New York: UN Sustainable Development Solutions Network.Google Scholar