Work detail

The effect of material prosperity on happiness: Evidence from Europe

Author: Bc. Dominika Rečková
Year: 2017 - summer
Leaders: Mgr. Barbara Pertold-Gebická M.A., Ph.D.
Work type: EEI & EP
Language: English
Pages: 186
Awards and prizes:
Abstract: Easterlin paradox referring to relatively stable levels of happiness and increasing income
over time, although these two seem to be correlated at one point in time has
became a hot topic among economist researches in recent decades. The thesis extends
the usual income analysis to reveal the nature of correlations between material
prosperity and happiness. Series of 15 OLS, ordered probit and ordered logit models
together with 35 quantile regressions provide a complex analysis of possible happiness
drivers. Results find significant correlations between material prosperity and
happiness, and between happiness and social life. The relationship between income
and happiness might be non-linear and influenced by various factors. Happiness is
found to be dependent on relative income and socio-politic living environment which
explains the Easterlin paradox.


McKinsey & Company
Moneta Money Bank