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on Economics of Happiness |
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Issue of 2026–05–04
nine papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Azizbek Tokhirov; Riga Qi; Trang Thanh Tran |
| Abstract: | How does an episode of forced displacement affect the subjective well-being of victims upon their return? To answer this question, we study the weeklong inter-ethnic conflict that occurred in southern Kyrgyzstan in June 2010, using individual survey data for 2006–2019. Our baseline analysis compares conflict-affected displaced individuals with unaffected individuals while controlling for observable characteristics. To address the potential endogeneity of displacement, we complement these estimates with an instrumental-variables strategy based on household-level geographic features, including proximity to conflict-related destruction and the availability of nearby locations suitable for temporary hiding. We also use a difference-in-differences design to trace changes in local subjective well-being over time. Our results show that even short-term displacement is associated with a substantial decline in postconflict subjective well-being. This negative effect is attenuated among individuals who received support from family and friends during displacement. The effects also vary markedly across dimensions of subjective well-being, with the strongest negative impacts observed for satisfaction with dwelling, health, security, and future prospects. Although the subjective well-being of displaced individuals gradually converges toward that of non-displaced individuals, recovery is slow and takes several years. |
| Keywords: | forced displacement, subjective well-being, inter-ethnic conflict |
| JEL: | D6 I31 O15 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:cer:papers:wp819 |
| By: | Haifang Huang (University of Alberta); John Helliwell (University of British Columbia) |
| Abstract: | Using the Canadian sample of the Gallup World Poll, we document large declines in subjective well-being (SWB) among young adults (20–34), measured by the Cantril life ladder, alongside rising food and shelter insecurity, worsening perceptions of local housing affordability and job climate, and deteriorating living standards. Oaxaca-type decompositions show that these economic stressors account for nearly half of young adults’ decline in their average Cantril life evaluation from the 2005-14 baseline period to the 2023-25 cost-of-living crisis, and 38-58%, depending on specifications, of the widening in the evaluation gap between the youngest (20–34) and oldest (65+) groups. <p> Housing stands out. Dissatisfaction with local housing affordability is the biggest contributing factor among young adults, but is less important for older groups. Analysis using Teranet House Price Index (HPI) shows that rises in local house prices worsen affordability perceptions across all age groups; they also predict lower life evaluations among young adults, but not among seniors.<p> In contrast, changes in eight non-economic domain measures (covering self-reported health, social support, trust, perceived respect, and prosocial activity) contribute little to young adults’ life-evaluation decline. We interpret the evidence as indicating that the happiness crisis among young Canadians is, to a large degree, an economic crisis. |
| Keywords: | subjective well-being; generation; demographics |
| JEL: | E24 H23 J64 J68 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:022456 |
| By: | Akay, Alpaslan (University of Gothenburg); Bargain, Olivier (University of Bordeaux); Lomidze, Beka (Bordeaux University); Martinsson, Peter (Technical University of Denmark) |
| Abstract: | We study the medium-run effects of a major climate shock on insurance demand and subjective well-being. Exploiting quasi-random exposure to storm Gudrun (Sweden, 2005) and conditioning on satellite-based forest and terrain characteristics, we treat realized damages as conditionally exogenous. Three years after the event, affected forest owners exhibit a persistent increase in insurance take-up alongside significant welfare losses. These losses are economically meaningful and consistent with important non-pecuniary and psychological costs, including landscape damage and heightened insecurity. Insurance provides only limited welfare buffering, operating partly as reassurance rather than full compensation. Overall, the results highlight the limits of climate insurance as a stand-alone adaptation tool. |
| Keywords: | natural disasters, insurance take-up, subjective well-being, Gudrun |
| JEL: | G22 Q54 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18553 |
| By: | Chris Riddell; Craig Riddell |
| Abstract: | We re-assess the consequences of a NIT for two-parent families, utilizing hitherto untapped data. The Gary and Seattle experiments fail balancing tests. In New Jersey, Denver and Manitoba we estimate far greater labor supply responses than the current consensus, with remarkable consistency in point estimates and statistical significance across experiments, genders and countries. On the other hand, using newly collected data from archival records, we estimate substantial increases in happiness, marital satisfaction, household production, and social activities in Manitoba. We also reject the contentious finding that the NIT increased marital separations in Seattle-Denver, which is driven solely by Seattle. |
| Keywords: | Basic Income, Negative Income Tax, Income Support Programs, Labour Supply, Marital Satisfaction, Household Well-Being |
| JEL: | C93 I38 J12 J22 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2579 |
| By: | Alex Bryson; Antti Kauhanen; Petri Rouvinen |
| Abstract: | Utilizing nationally representative cross-sectional and longitudinal data from Finland (2018-2023), we provide a population-level assessment of the relationship between AI and worker well-being. Contrary to international evidence suggesting a positive or an inverted U-shaped relationship, we find no systematic association between AI use intensity and job satisfaction. However, we do find that work engagement is higher among employees who are personally involved with AI, with the strongest association among intensive users for whom AI is an essential part of their work. Furthermore, technology-replacement fears have remained stable despite rapid AI advancement and do not predict subsequent labour market transitions. An interpretation is that Finland's high-trust institutional environment and robust social safety nets may effectively moderate the disruptive psychological and economic shocks typically associated with rapid technological change. |
| Keywords: | Artificial intelligence, job satisfaction, work engagement, technology-related fears, labour market transitions |
| JEL: | J28 L23 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26108 |
| By: | Neil Conway; Marion Fortin; Gregor Bouville (Institut d'Administration des Entreprises (IAE) - Lyon, UJML3 LC - Université Jean Moulin Lyon 3 - Faculté des Humanités, Lettres et Sociétés (Lettres et civilisations jusqu'en 2024) - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon, MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon); Eric Campoy |
| Abstract: | While economists, sociologists and to a lesser extent psychologists have researched pay inequality, it has been majorly neglected in management research. This study examines the combined effects of pay level and pay inequality on needs satisfaction and negative affective wellbeing. Drawing on a large-scale UK nationally-representative dataset of employees nested within workplaces, we find that lower levels of pay associate with lower need satisfaction, which in turn relates to negative affective wellbeing. Against expectations, workplace pay inequality was not directly associated with needs satisfaction or negative affective wellbeing. In line with expectations, the effects of pay inequality on need satisfaction was moderated by the extent workplaces operated individual performance-related pay practices, and pay level had stronger effects on needs satisfaction in workplaces characterised by high pay inequality. The findings suggest that pay level is a much stronger direct predictor of needs satisfaction than pay inequality, that a workplace's individual performance-related pay practices shape the effects of pay level and to a lesser extent pay inequality on need satisfaction, and that workplace pay inequality shapes the context surrounding the effect of pay level on need satisfaction. |
| Date: | 2026–03–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05595032 |
| By: | Astruc--Le Souder, Mael (Bordeaux University); Bargain, Olivier (University of Bordeaux); Knecht, Niclas (Bordeaux University) |
| Abstract: | Trust in others is essential for the well-functioning of societies. While economists often study its longer-term determinants, short-term fluctuation may be equally critical, particularly during pivotal moments (e.g, elections) or periods requiring social cohesion (e.g., pandemics). Hope plays a similarly vital role in shaping individual well-being, behavior, and societal stability. We investigate the short-run plasticity of trust and hope by reactivating threat exposure similar to that encountered in media coverage. In an online experiment, individuals are randomly exposed to short videos depicting terrorism, natural disasters, or war. Both social trust and hope are significantly malleable, declining by 12%-28% of a standard deviation (across models) in response to these brief interventions. We observe strong heterogeneity in these effects, particularly along lines of political orientation and social media usage, and explore their co-movements with basic emotions. Our findings suggest that routine exposure to threatening content can destabilize the emotional underpinnings of trust and hope, with potential implications for key individual and collective behaviors. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18554 |
| By: | Manuela Angelucci; Raissa Fábregas; Antonia Vazquez |
| Abstract: | AI-powered mental health apps have attracted growing interest as a low-cost way to expand care. Yet questions remain about their effectiveness, safety, and whether they may crowd out psychotherapy. We evaluate one such app in a randomized controlled trial among 1, 964 Mexican women with mild to severe psychological distress. Over six months, app access improved mental health by 0.3 standard deviations with no evidence of harm, improved sleep quality, increased healthful behaviors, and reduced missed work, yielding considerably larger benefits than costs. Treated participants were also more likely to seek traditional psychotherapy, but this increase does not explain most of the mental health gains. App use was high in the first month but then declined, as is common in digital interventions. Despite this drop in use, treatment effects persisted. Participants continued to implement practices promoted by the app, suggesting that even short-term engagement can produce durable improvements through sustained behavioral change. |
| Keywords: | Mental Health, AI |
| JEL: | I12 I15 O33 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26107 |
| By: | Christopher Campos |
| Abstract: | This paper measures parents' beliefs about school and peer quality, how information about each affects school choices and student outcomes, and how social interactions mediate these effects. Parents underestimate school quality and overestimate peer quality. Cross-randomized school and peer quality information combined with a spillover design shows that when parents received information, they and their neighbors' preferences shifted toward higher value-added schools, underscoring stronger tastes for school quality and the role of social interactions. These demand responses translate into real educational gains. Students exposed to the improved information enroll in more effective schools, achieve higher test scores, report improved socio-emotional well-being, and are more likely to enroll in college. The experimental evidence shows parents value school effectiveness even conditional on peer quality and that improving the informational environment can elevate numerous policy-relevant outcomes. |
| Keywords: | school choice, school quality, preferences, information, value-added, social interactions |
| JEL: | I21 I24 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26008 |