Transcript The Science of Well-Being - University of Toronto Mississauga

Well-being and Public Policy:
The Collective Pursuit of Happiness
Ulrich Schimmack
University of Toronto Mississauga
Well-Being is a Popular Topic
Public Policy
- Rules that influence individuals’ pursuit of
happiness.
- What is (ideally) the goal of public policy?
- maximize citizens’ well-being
- ensure fair distribution of well-being
- The Criterion Problem:
- What is well-being?
- What is fair?
Public Policy and Well-Being
Report by the Stiglitz Commission
http://www.stiglitz-sen-fitoussi.fr/en/index.htm
What is Well-Being?
A List Approach
An individual with high well being …
A. is healthy
B. is ill
A. is free
B. is unfree (imprisoned)
A. is safe
B. is threatened
A. feels happy B. feels unhappy
A. is educated
B. is uneducated
A. is rich
B. is poor
What is well-being?
-Objective definition: optimal functioning
What is well-being?
- Subjective definition: Preference Realization
The match between an individuals’ actual and
ideal life.
Classic Welfare Economics
- Paul Samuelson
- 1970 Nobel laureate
- Utility / Efficient Markets
- Income
- Opportunity to realize preferences
- Limited to market goods and services
2008 Ranking of Nations (IMF Data)
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita
Human Development Index
- Amartya Sen
- 1998 Nobel laureate
- Capabilities
- Human Development Index
- Income
- Health
- Education
2007 Ranking of Nations
http://en.wikipedia.org/wiki/Human_Development_Index
Subjective Indicators
- Hadley Cantril
- Public Opinion researcher
- Cantril’s Ladder (1965)
- Single-Rating
0 = worst possible life
10 = best possible life
Subjective Indicators
All things considered, how satisfied are you
with your life as a whole these days?
Please choose a number ranging from
1 = dissatisfied to 10 = satisfied.
World Value Survey Results for Canada:
1982 7.84
1990 7.88
2000 7.80
2006 7.72
1990-2000 Ranking of Nations
http://mappingglobalhappiness.wordpress.com/2008/11/01/res
ults/happinessmap/
Well-Being and Wealth (PPP)
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
0
5000
10000
15000
20000
25000
Linear r = .83, log-function r = .82
Source. Schimmack (2007).
30000
35000
40000
Summary
- Convergent evidence from different wellbeing indicators (GDP, HDI, LS).
- Wealthy nations have higher well-being than
poor nations.
- There is no cut-off point.
- We are lucky to live in Canada.
Variation within Nations
- Most results are based on data from other,
yet similar countries (USA, Germany).
- Results could be different in Canada.
"Americans who earn $50,000 per year are
much happier than those who earn $10,000 per
year," writes Gilbert, "but Americans who earn
$5 million per year are not much happier than
those who earn $100,000 per year."
Lucas & Schimmack (2009)
How Happy are the Super-Wealthy?
- Diener et al. (1985)
- Mailed Happiness Survey to Individuals on
Forbes 500 (N = 49)
Average
Forbes
LS IQ m/cm f/cm
3.70 100 178 165
4.77 115 185 172
Daily Life-Satisfaction of US Americans
Money and Well-Being
Scientific Evidence
- Wealthier individuals are happier
- Money buys (some) happiness
Policy Implications
- Progressive taxes
- Universal health care
Personality and Well-Being
- Twin studies
- Same genes, different lives
- Similar well-being
CBS Show “Giggle Twins”
Longitudinal Stability
- Life satisfaction is quite stable over time.
- About 50% of the variation among
Canadians is influenced by personality
dispositions.
- Life satisfaction only partially reflects lifecircumstances.
Source. Schimmack et al. (in press).
Policy Implications?
- Change dispositions
- Education (Positive Psychology)
- Psychotherapy
- Drugs (Prozac)
- Social Policies
- Tax cheerfulness
- Ignore dispositions
- Focus on external factors
Unemployment and Life-Satisfaction
Source. Knabe, A. & Raetzel, S. (2007). Quantifying the psychological
costs of unemployment. FEMM Working Paper, 12, April 2007.
Life Satisfaction of White and Black US
Americans
0.3
0.2
Standardized Life Satisfaction
0.1
0
-0.1
-0.2
White
-0.3
Black
-0.4
-0.5
-0.6
-0.7
2004
2000
1996
1993
1990
1988
1986
1984
1982
1978
1976
1974
1972
-0.8
Source. Diener, Lucas, Schimmack, & Helliwell (2009).
Overall Conclusion
- Subjective measure of well-being are
important.
- They often converge with objective indicators
(wealth, unemployment, reduced prejudice).
- They do not provide simple policy solutions.
- They do not directly solve the problems of
conflicting interests and sustainability.
Outlook
- Better information = better choices = better life
- Recognize and use diversity in preferences
- Accept some inevitable unhappiness