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When Does Economic Growth Improve Well-Being?

In: The Economics of Happiness

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  • Francesco Sarracino

    (Institut National de la Statistique et des Etudes Economiques du Grand-Duché du Luxembourg (STATEC)
    LCSR National Research University Higher School of Economics)

Abstract

Is economic growth the way to pursue better lives? After the second world war, many industrialized countries experienced an unprecedented economic growth that significantly improved people’s living conditions. However, the raising wealth did not result in higher well-being. This conclusion is inconsistent with the well established belief that economic growth is the way to improve the human lot. In this chapter I discuss the evidence on some of the conditions for durable improvements in well-being, namely promoting social capital, and reducing income inequality. I conclude that the quality of growth matters for well-being and that it is possible to adopt policies to make economic growth and well-being compatible.

Suggested Citation

  • Francesco Sarracino, 2019. "When Does Economic Growth Improve Well-Being?," Springer Books, in: Mariano Rojas (ed.), The Economics of Happiness, chapter 0, pages 355-370, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-15835-4_15
    DOI: 10.1007/978-3-030-15835-4_15
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    Cited by:

    1. Drishti, Elvisa & Carmichael, Fiona, 2022. "Life satisfaction and job insecurity: Evidence from Albania," GLO Discussion Paper Series 1072, Global Labor Organization (GLO).
    2. Carol Graham, 2005. "The Economics of Happiness," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(3), pages 41-55, July.

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