Work detail

Happiness and Income

Author: Bc. Veronika Machová
Year: 2017 - summer
Leaders: doc. Ing. Tomáš Cahlík CSc.
Consultants:
Work type: Bachelors
Language: English
Pages: 48
Awards and prizes:
Link:
Abstract: This thesis examines relationships between average national subjective well-being and three
economic factors—income (expressed as gross domestic product [GDP] per capita),
unemployment, and economic freedom—applying fixed effects, random effects, and
correlated random effects methods on panel data for countries worldwide, which are divided
into three groups based on their level of development. Two measures of subjective wellbeing—feeling
of happiness, and life satisfaction—are used, and the outputs are then
compared for both. The results indicate that all three factors have a significant impact on
subjective well-being, and GDP per capita seems to be the strongest determinant thereof.
Moreover, the findings differ depending on whether life satisfaction or happiness is used as
the measure of subjective well-being. The effects of GDP per capita and economic freedom
are higher on the former than the latter.

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