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on Economics of Happiness |
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Issue of 2024–11–11
seven papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Axelle Heyert (LaRGE Research Center, Université de Strasbourg); Laurent Weill (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | This paper investigates whether financial inclusion affects life satisfaction. We perform regressions at the individual level on a large dataset of 59, 209 individuals from 29 countries. We find evidence that financial inclusion improves life satisfaction. We further establish that the beneficial effect of financial inclusion takes place through a better health, education and to a lesser extent through the launch of a business. We observe that the positive impact of financial inclusion on life satisfaction is greater in countries with higher income per capita, and lower in countries recently struck by a financial crisis. Our results indicate that promoting financial inclusion can enhance happiness. |
| Keywords: | financial inclusion, life satisfaction, banking. |
| JEL: | G21 I31 O16 P46 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lar:wpaper:2024-07 |
| By: | Mohammad H. Asadi (Philipps-Universität Marburg); Mohammad Reza Farzanegan (Philipps-Universität Marburg) |
| Abstract: | We examine the relationship between household income and happiness in Afghanistan and the moderating roles of fear of insecurity and experiencing violence. Our study is based on surveys conducted by the Asia Foundation from 2014 to 2021 across 34 provinces in Afghanistan. Employing fixed effects ordered logit regressions, our results reveal a positive association between income and happiness. Additionally, we find a negative association between fear of insecurity, experiencing violence, and happiness. Among individuals with higher incomes and a fear of insecurity, the probability of having a high level of happiness declines by about 2.4% points when compared to those without such fear. Furthermore, for individuals with higher incomes who have experienced violence, the probability of having a high level of happiness declines by about 3.8% points when compared to those who have not experienced violence. However, for individuals with low incomes, insecurity and violence do not significantly impact their predicted level of happiness. This result can be attributed to two main issues. First, in conflict-affected areas, high-income individuals not only encounter the inherent dangers of their environment and the constant threat of terrorism, but also face increased risk of asset loss and institutional mistrust due to rampant corruption. Second, fear of insecurity and experiencing violence are influenced by psychological factors and diminish the positive impact of higher income on happiness. The results are robust to the inclusion of other socio-economic and demographic characteristics of the respondents. |
| Keywords: | Happiness, Life Satisfaction, Conflict, Violence, Afghanistan, Ordered Logit, Survey |
| JEL: | D74 H56 I31 N35 O15 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202325 |
| By: | Maja Klindzic (Faculty of Economics and Business, University of Zagreb); Antonio Hrvoje Huljic (Privredna banka Zagreb) |
| Abstract: | The flexibility of working hours and location has become an integral part of employers' corporate policy. In the post-pandemic era, location-based flexibility in particular seems to be the working practise that employees want to keep. Although many positive aspects of working from home or remotely have been highlighted in the literature over the years, the disadvantages of these flexible forms of work have also been identified. In light of these trends in work organisation, or the fact that work from home could become standard practise in many companies in the coming years, we were interested in investigating the relationship between working from home and overall employee happiness. Throughout history, happiness has been described as the natural goal of life and the ultimate end of temporal existence. The positive psychology introduced the concept of happiness to a wider audience, not only at an individual level, but also at the level of organisations and entire nations. Moreover, happiness has recently been promoted as a macroeconomic concept that is now actively pursued by countries and their governments. In order to develop policies that influence the happiness levels of people and countries, it is important to gain knowledge about the different factors that influence happiness, including human resource practises. As employment nowadays occupies a central place in people?s lives, it is postulated that the workplace plays a crucial role in people?s happiness. This served as motivation to investigate whether working from home, as a highly sought-after practise, is positively related to overall happiness. The empirical study was conducted using a questionnaire on a sample of 87 employees, mostly young, highly educated and employed in various industries, most of them in the banking sector. Of all sampled participants, two thirds had the option to work from home and most of them utilised it. The research results show that almost half of them believe that the main advantage of working from home is the time saved by not having to commute while the lack of communication with colleagues and/or superiors was identified as a main disadvantage. However, the relationship between working from home and overall happiness was non-significant and almost non-existent. Flexible working options should be significantly revised in the future to account not just for the potential benefits but also for its disadvantages. |
| Keywords: | Happiness, Remote work, Work from home, Life satisfaction, Well-being |
| JEL: | M10 M12 O00 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516392 |
| By: | Jihye Lee; Žiga Žarnic |
| Abstract: | Digital technologies are reshaping our lives, with significant impacts on personal and societal well-being. As these technologies are increasingly integrated into everyday life, it is crucial to raise awareness on their positive and negative impacts which are reviewed in this paper. While innovations like AI in healthcare and assistive devices empower individuals and improve access, they also introduce risks such as mental health challenges, misinformation, and privacy breaches. Raising awareness around digital risks helps individuals make smarter, safer decisions. At the same time, empowerment is about more than just awareness; it involves giving users control over their digital experiences, equipping them with the skills to harness technology for education, employment, and personal growth. Ultimately, responsible digital use is essential for safeguarding data privacy, supporting democratic values and respecting ethical standards. While digital technologies have the power to level the playing field, they can deepen existing inequalities if access and skills are unevenly distributed. Bridging digital divides through tailored inclusive solutions is equally important. Understanding the relationship between technology use and well-being is therefore key, but further research is needed to fully grasp these dynamics. |
| Keywords: | civic engagement, digital divide, digitalisation, health, personal safety, social connections, subjective well-being, well-being, work-life balance |
| JEL: | I1 I3 |
| Date: | 2024–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:wiseaa:29-en |
| By: | OECD |
| Abstract: | The COVID-19 pandemic, cost-of-living crisis and emerging geopolitical risks and conflicts have significantly disrupted economies and impacted people's lives. How’s Life? 2024 - Well-being and Resilience in Times of Crisis, the 6th edition of the How's Life? report series, provides a compass to understand how well OECD governments are navigating these interconnected challenges. It presents the latest insights from over 80 indicators in the OECD Well-being Framework and assesses the social, economic, and environmental outcomes that matter most to people’s lives. It identifies current social, inclusion and sustainability challenges, and highlights key policy areas and emerging risks needing further attention. The main findings of How's Life? 2024 are summarised in this policy insights. |
| Date: | 2024–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:wiseab:17-en |
| By: | KUME Koichi; TSURU Kotaro; KAWAKAMI Atsushi |
| Abstract: | In recent years, the number of independent and self-employed workers, i.e., workers who are commissioned to perform work without being employed and who receive remuneration directly without hiring others, has been increasing. On the other hand, the issue of their employer-subordinate status has been debated as to whether or not they are protected by labor law. However, the actual situation of workers having an independent and self-employed status and its impact on worker performance has not been sufficiently clarified. Therefore, in this paper, we define a term “worker-ness†and confirm that about 40% of the 2251 independent self-employed workers have worker-ness. We also empirically analyze the impact of worker-ness on the performance of independent self-employed workers. The results showed that workers with high dependency on employers were associated with lower hourly wages, longer working hours, lower subjective productivity, lower happiness, job satisfaction, and life satisfaction, and negative effects on health, mental health, and work engagement. Controlling for past work experience and reasons for being independent and self-employed, we confirmed that higher dependency on employers still negatively affected many of the performance variables. Finally, we confirmed that fixed business relationships positively affect worker performance and abuse of dominant positions negatively affected worker performance, confirming the robustness of our findings on the negative effects of dependency on employers. These results suggest that while both competition law and labor law are currently being addressed to protect independent self-employment, it is desirable to understand the reality of dependency on employers, especially from the perspective of worker performance. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:24023 |
| By: | Ignacio González Vázquez (European Commission – JRC); Maurizio Curtarelli (European Agency for Safety and Health at Work (EU-OSHA)); Ioannis Anyfantis (European Agency for Safety and Health at Work (EU-OSHA)); Emmanuelle Brun (European Agency for Safety and Health at Work (EU-OSHA)); Annick Starren (European Agency for Safety and Health at Work (EU-OSHA)) |
| Abstract: | This paper examines the psychosocial risks associated with the digital transformation of work, focusing on the automation of tasks, digitalisation of work processes, and the platformisation of work. It highlights that while automation and digitalisation can offer ergonomic and occupational safety and health benefits, they may also diminish worker autonomy and increase mental health risks. The adoption of digital technologies can improve communication and engagement but may lead to intensified workloads and can incentivise an 'always-on' culture. Platform work, with its precarious employment conditions, can also exacerbate occupational safety and health risks. The paper also argues that the spread of platform-like worker monitoring and algorithmic management to traditional workplaces can exacerbate certain psychosocial risks. The paper confirms that addressing these challenges requires a comprehensive approach that includes worker consultation, integration of OSH considerations from the design phase, and a holistic risk assessment that considers both technological and organisational contexts. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:laedte:202403 |