This paper studies happiness in the United States and Great Britain. Reported levels of wellbeing
have declined over the. Last quarter of a century in the US; life satisfaction has run
approximately flat through time in Britain. These findings. Are consistent with the Easterlin
hypothesis [Nations and Households in Economic Growth: Essays in Honour of Moses
Abramowitz. (1974) Academic Press; J.Econ. Behav. Org, 27 (1995) 35]. The happiness of
American blacks however has,, risen. White women in the US have been. The biggest losers
since the 1970s. Well-being equations have a stable structure. Money buys happiness. People
care also. About relative income. Well-being is U-shaped in age. The paper estimates the dollar
values of events like unemployment. And divorce. They are large.A lasting marriage (compared
to widowhood as a 'natural' experiment), for example is estimated, to be worth $100 000 a,, Year.
D 2002 Published by Elsevier B.V.
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