Economic growth can lead to a decrease in societal happiness
Whether economic growth diminishes societal happiness remains a central debate, often examined through the Easterlin Paradox. Some research shows that economic expansion brings negative byproducts like pollution and inequality that stall happiness, while other studies find a clear positive link between rising incomes and subjective well-being.
The retrieved papers reflect an active scholarly debate regarding the Easterlin Paradox. Several studies support the claim by emphasizing that economic growth often introduces environmental degradation, stress, and relative income pressures that decouple GDP growth from increases in happiness. Conversely, other prominent studies present empirical data demonstrating a robust positive correlation between rising absolute incomes and subjective well-being over time. Because both perspectives are well-represented with substantial theoretical and empirical backing, the balance verdict is CONTESTED.
Rafael Di Tella, Robert MacCulloch. Gross National Happiness as an Answer to the Easterlin Paradox?. 2005. https://doi.org/10.2139/ssrn.707405
Identifies negative correlations between happiness and factors accompanying growth such as environmental degradation and work hours.
Betsey Stevenson, Justin Wolfers. Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox. 2008. https://doi.org/10.1353/eca.0.0001
Reassesses datasets to find a clear positive link between GDP per capita growth and rising subjective well-being over time.
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Gökhan Tosun. Testing Conceptual Growth Theory: Economic Development, Subjective Social Well-Being, and the Limits of GDP Growth. 2026. https://doi.org/10.21203/rs.3.rs-9830934/v1
Finds that short-term economic growth rates do not significantly predict increases in subjective social well-being or trust.
Kai Li, Feng Yu, Yanchi Zhang, Yongyu Guo. The Effects of Subjective Social Class on Subjective Well-Being and Mental Health: A Moderated Mediation Model.. 2023. https://doi.org/10.3390/ijerph20054200
Notes that rapid economic growth in China has not been accompanied by greater overall happiness for the population.
Xin Zhang, Xiaobo Zhang, Xi Chen. Happiness in the Air: How Does a Dirty Sky Affect Mental Health and Subjective Well-being?. 2017. https://doi.org/10.1016/j.jeem.2017.04.001
Shows that negative byproducts of economic activity, such as air pollution, can decouple growth from subjective well-being.
Robert H Frank. The Easterlin paradox revisited.. 2012. https://doi.org/10.1037/a0029969
Revisiting the Easterlin paradox highlights that well-being does not simply scale upward with economic expansion due to relative income effects.
Qian Su, Guofang Liu. Birth Cohort Changes in the Subjective Well-Being of Chinese College Students: A Cross-Temporal Meta-Analysis, 2002-2017.. 2020. https://doi.org/10.3389/fpsyg.2020.01011
Demonstrates that college students' well-being in a developing economy significantly increased alongside GDP per capita growth.
Shuijin Li, Tingshao Zhu. A Panel Data Analysis of Subjective Well-Being Based on Microblog User Information.. 2022. https://doi.org/10.3390/healthcare10112305
Finds a positive correlation and Granger causality running from economic development indicators to subjective well-being.
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