Correlational finding on Happiness and Economic growth/decline in nation
Subject code: N04aa02a

StudySacks et al. (2010): study ZZ World samples 1981
TitleSubjective well-being, income, economic development and growth.
SourceWorking Paper 2010-28, FRBSF, 2010, San Francisco, USA
URLhttp://www.nber.org/papers/w16441
Public18+ aged general public, 79 nations, 1981-2004
SampleProbability multi-stage cluster sample
Non-Response
Respondents N =300000

Correlate
Author's labelGDP/capita
Page in Source Table 2+ table 3
Our classificationEconomic growth/decline in nation, code N04aa02a
Operationalization
a) Change in Real GDP/capita (log)
b) Real GDP/capita (log)

Observed Relation with Happiness
Happiness
Measure
StatisticsElaboration/Remarks
O-SLW-c-sq-n-10-ab-fix=+.51 p < .01
a) CHANGE AVERAGE happiness by CHANGE purchasing 
power in nation

All 79 countries (166 nation/year observations)
Set Image size:   

O-SLW-c-sq-n-10-ab-fix=+.63 p < .05
a) CHANGE AVERAGE happiness by CHANGE purchasing 
power in nation

10 transition countries only (31 nation/year 
observations)
O-SLW-c-sq-n-10-ab-fix=+.41 p < .01
a) CHANGE AVERAGE happiness by CHANGE purchasing 
power in nation

66 non-transition countries only (135 nation/year 
observations)

Similar results when only the difference between 
the first and last observation is considered

b's controled for
- country fixed effects
- wave fixed effects
O-SLW-c-sq-n-10-aBeta=+.37 p < .01
b) Real GDP/capita

Beta controlled for:
- Age squared
- Sexe


Appendix 1: Happiness measures used
CodeFull Text
O-SLW-c-sq-n-10-aSelfreport on single question:

All things considered, how satisfied are you with your life as-a-whole these days?
1 dissatisfied
2
3
4
5
6
7
8
9
10 satisfied


Appendix 2: Statistics used
SymbolExplanation
b-fixREGRESSION COEFICIENT in fixed effects analysis
Type: test statistic
WDH symbol: b-fix
Primary correlate level: metric
Secondary correlate level: nonmetric
Happiness level: metric
Theoretical range: unlimited
Meaning:
Variant of usual (non-standardized) regression coefficient (b), which controls for the secondary variables, by focusing on differences from a fixed level, such as the mean in a category. Aims to reduce the residual variance and to improve the precision of the regression coefficient.

References:
Wikipedia: http://en.wikipedia.org/wiki/Fixed_effects_model
Non-technical text: http://www.jblumenstock.com/files/courses/econ174/FEModels.pdf
Beta STANDARDIZED REGRESSION COEFFICIENT by LEAST SQUARES (OLS)
Type: test statistic.

Measurement level: Correlates: all metric, Happiness: metric.
Range: [-1 ; +1]

Meaning:
beta > 0 a higher correlate level corresponds to a higher happiness rating on average.
beta < 0 a higher correlate level corresponds to a higher happiness rating on average.
beta = 0 no correlation.
beta = + 1 or -1 perfect correlation.
Source:
Ruut Veenhoven, World Database of Happiness, Collection of Correlational Findings, Erasmus University Rotterdam.
https://worlddatabaseofhappiness.eur.nl