Happiness can be good business

Ruut VeenhovenErasmus University Rotterdam

Presentation at symposium on:A market for happiness

Haring Happiness Institute, August 28th, Utrecht, The Netherlands

Happiness can be good business

1. What is ‘happiness’?

2. How happy are we?

3. Can we get any happier?

4. Ways to greater happiness

5. What the market can supply

What is ‘happiness’?

What is ‘happiness’? Four qualities of life

external

internal

chances

outcomes

What is ‘happiness’?Four qualities of life

external

internal

chances

Livability

Life-ability

outcomes

Utility

Satisfaction

with life

What is ‘happiness’?Four kinds of satisfaction

Passing

Enduring

Part

Whole

What is ‘happiness’?Four kinds of satisfaction

Passing

Enduring

Part

Pleasure

Domain

satisfaction

Whole

Top experience

Life-satisfaction

(happiness)

How happy are we?

Measurement of happinessBest practice in direct questioning

• global self estimate– single question for large scale surveys

– multiple questions

• multi-moment average for small scale follow-up

Measurement of happinessExample of a survey question

Taking all together, how satisfied or dissatisfied are you with your life as a whole these days?

1 2 3 4 5 6 7 8 9 10

Dissatisfied Satisfied

How happy are we?Netherlands 2000

levenstevredenheid

dktevre98765432ontevre

Per

cent

age

40

30

20

10

0

Happiness in nations in the 1990s

• Denmark 8,2

• Switzerland 8,0

• Netherlands 7,5

• USA 7,4

• Germany 7,1

• Japan 6,2

• Russia 4,4

• Zimbabwe 3.3

Can we get any happier?

Can we get any happier?

20052000199519901985198019751970

10,00

8,00

6,00

4,00

2,00

Russia

Netherlands

Denmark

Can we get any happier?

Sources of differences in happiness

within modern nations:

• Heredity ± 30%

• Birth ± 10%

• Good/bad luck ± 10%

• Learned abilities 25%?

• Choice 25%?

Ways to greater happiness

Ways to greater happiness

• Macro level of society

• Meso level of organizations

• Micro level of individuals

Ways to greater happiness

Macro level of society

• Do invest in:– Direct democracy– Good governance– Freedom

• Don’t– Extend Social security– Discourage work

Ways to greater happiness

Meso level of organizations

• Show differences of happiness in– Schools– Work places– Nursing homes

• Stimulate competition

Ways to greater happiness

Micro level of individuals

• Improve life-ability– Psycho-therapy for mental defects– Training in art-of-living

• Optimize choice

What the market can supply

What the market can supply

• Optimal livable institutions

• Happiness tested goods

• Effectiveness tested trainings

• Information for optimal choice

What the market can supply

Optimal livable institutions

e.g. schools, old age homes

• Assessment of long-term happiness

• Comparison with competition

• Evidence based product development

What the market can supply

Happiness tested goods

e.g. houses, hollidays

• Evidence based information about effects on happiness

• Compared to competing goods

What the market can supply

Effectiveness tested trainings

• Follow long-term effects on happiness

• Compare with alternatives

• Find out what works for whom

What the market can supply

Information for optimal choice

• Assess consequences of life-choices for a great number of people

• Split-up by kind of people

• Diffuse thought private counseling and mass media

World Database of Happiness

http://worlddatabaseofhappiness.eur.nl