This raises an issue that although production is important the allocation and distribution of the production is even more important. Canada australia and european countries such as germany norway sweden and finland have lower income inequality and also have higher happiness indices compared to the united states.
Each country is an arrow on the grid and the location of the arrow tells us the corresponding combination of average income and average happiness.
Income and happiness comparing countries. The usa clocking in at a dismal 18th place on the report has 25 more annual output per person than finland. Aside from having a common geographic location these countries are also well known for their social safety nets using a high tax burden to fund government services such as education and healthcare. The top tier of happiest countries happen to be nordic with finland norway denmark and iceland making it into the top five.
Finland 2018 s happiest country on earth has a per capita income of 49 000. It looks at the state of global happiness in 156 countries ranking countries using the gallup world poll and six factors. Now researchers have an answer.
Sources for data are the world bank and the world happiness report 2017. At a point in time both among and within nations happiness varies directly with income but over time happiness does not increase when a. But the correlation is far from perfect.
Simply stated the happiness income paradox is this. Today s chart looks at the relationship between gdp per capita ppp and the self reported levels of happiness of each country. According to the numbers the relationship between money and happiness is strong early on for countries.
To show the income happiness correlation across countries the chart plots the relationship between self reported life satisfaction on the vertical axis and gdp per capita on the horizontal axis. Levels of gdp life expectancy generosity social support freedom and. Some of the world s happiest countries have high gdp per capita and most of the least happy are very poor.
The economics of happiness and a country s income inequality for many years people have puzzled over why countries that get richer don t seem to get happier. Income inequality is plotted on the x axis and the correlation between happiness and economic output is on the y axis. The chart below shows how the 34 nations in the study compare to one another.