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CEP discussion paper
The Objective Benefits of Subjective Well-Being
Jan-Emmanuel De Neve, Ed Diener, Louis Tay and Cody Xuereb
August 2013
Paper No' CEPDP1236:
Full Paper (pdf)

JEL Classification: E10;E30;E24;E21

Tags: unemployment; aggregate demand; matching frictions

The aim of this paper is to survey the 'hard' evidence on the effects of subjective well-being. In doing so, we complement the evidence on the determinants of well-being by showing that human well-being also affects outcomes of interest such as health, income, and social behaviour. Generally, we observe a dynamic relationship between happiness and other important aspects of our lives, with influence running in both directions.