Further insights arise from studies of subjective
well-being—i.e., people’s self-reported life satisfaction
as measured by comprehensive social surveys. In
a landmark paper, Richard Easterlin considered data
from a diverse set of industrialized and developing nations,
finding that: (a) in any given country at any point
in time, individuals with higher incomes report higher life satisfaction than those with lower incomes; but (b)
there was no correlation between average income in a
country and average life satisfaction.33 Subsequent research
has shown that point (b) is only partly correct.
In low-income societies, economic growth translates
into large gains in life satisfaction if the resources