Tag Archives: Denmark

How happy are we actually in Europe?

23 March 2015 21:34 ,

Did you feel particularly good last Friday? Maybe you enjoyed #Eclipse2015 as so many others did. Or you felt great because the world was celebrating the International Day of Happiness!

The International Day of Happiness was instituted by the United Nations in 2012, as I wrote last year. I must say that beyond a flood of tweets, I haven’t seen too many official events this year. The exception however was a very interesting data set from Eurostat that answers how happy we actually are in the EU.

I’ll come with the answers soon. But let me first give an idea on how we actually measure happiness.

How do you measure happiness?

There are practically three ways to measure happiness:

  • “Overall, how satisfied are you with your life these days?” With this question, people are asked about their overall quality of life or life satisfaction. There can be a little bias there – I might answer something different today than I would tomorrow. But the experience of researchers is that these biases cancel each other when the sample is large enough.
  • “How much of the time over the past four weeks have you been happy?” This question instead measures positive affect, or people’s happiness level on an emotional rather than on a more rational level. It’s based on the idea that beyond the overall life satisfaction, the presence of positive emotions and the absence of negative emotions is a good indicator of how a person really lives. 
  • Finally, there is ‘eudaimonia’, ‘eudaimonic happiness‘, or ‘meaning of life‘, which has a less clear-cut question. Eudaimonia broadly refers to the value and purpose of life, important life goals, and for some, spirituality. This requires a bit more reflection before it is answered.

Eurostat’s results show that the three measures are correlated at country level and at individual level, with some exceptions. A high level of positive affect is correlated with high life satisfaction and meaning of life. Still, one out of fourteen is ‘happy all of the time’ but with a low level of life satisfaction!

The good news: how happy are we?

There is a lot of good news in the figures:

  • 16 out of 28 countries have an average above 7.0, and the EU average is 7.1 out of 10
  • The highest level of happiness is found in Denmark, Finland and Sweden, with 8.0. The Netherlands and Austria score an 8.
  • On average, young people (16-24) score highest, at 7.6. The outliers are the Austrians: 8.4!
  • In Finland (8.3) and in my own home country, the Netherlands (8.0), the highest bracket is the age group 25-34. Does that mean that statistically, I will never be as happy as I am now? (The answer is: no. The study explains there can also be a ‘cohort effect’ – a group of people could retain the same happiness level, independent of their age group.
  • And the happiest are… Danish seniors! The absolute highest number is found in Danes in the age of 65-74: 8.6, and 0.7 higher than the 50-64 group in Denmark (7.9). There must be something amazing about retirement in Denmark!
  • There is only a marginal difference between men (7.1) and women (7.0). Also, there are slightly more women in the highest category. And controlling for differences in income, marital status, and labour market position, women are happier.
  • 42.1% of Danes scores above 8, and only 5.6% of Dutch score below 6. This might actually be the most important outcome: when it’s about happiness, it is not only the average but also the distribution that should count. In these two countries, happiness seems to be distributed fairly equally.

The bad news: how unhappy are we?

But there also is a bit of bad news in the figures:

  • Generally, happiness levels tend to decline with age: from 7.6 (16-24) to 6.9 (50-64), before making a little rise to 7.0 (65-74) and a further decline to 6.8 (75+)
  • Bulgarians and Serbians appear to be quite miserable: they score averages of 4.8 and 4.9. In Bulgaria, every age group is below 6.
  • Unemployment buys unhappiness. The difference between full-time employment and unemployment is 1.6 points (7.4 vs 5.8).
  • There is also a strong relation between poverty and unhappiness. Only 7.5% of materially deprived people has a high level of life satisfaction. And deprivation of important needs (ability to pay rent, to keep the home warm, a holiday or a car) has a larger negative effect on happiness than poverty in monetary terms.

The full analysis from Eurostat is available here.

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The Happy Danes: why are Danes so damn happy?

2 February 2015 20:36 ,

Something is special in the state of Denmark. Believe it or not, but despite associations with the grey weather, not-so-outgoing personalities, and general boredom, Denmark tops the ranking in many international happiness surveys. Denmark is the happiest country according the World Happiness Reports of 2012 and 2013, the European Social Survey of 2008, and the Eurobarometer of 2012.

What is so special about Denmark? Why are Danes so damn happy?

The Happiness Research Institute, or Institut for Lykkeforskning as it sounds in Danish, was founded a couple of years ago just to answer that question. And the answer is simply that Denmark is good in almost everything that is related to happiness. In the words of John Helliwell (Author of the World Happiness Report, and winner of the Nobel Prize for Happiness, if there had been one):

Broadly speaking, Denmark ranks highly in all factors that support happiness

The factors behind Danes’ high happiness

What is behind this happiness? According to the Happiness Research Institute’s study on The Happy Danes, there are eight factors that contribute to Danes’ high happiness levels:

  1. Trust. People tend to trust each other – this even comes in crazy forms: I’ve been told that in Denmark it’s completely normal to leave your baby stroller (baby included) outside the supermarket during groceries or at a bar when you get a coffee.
  2. Security. The welfare state helps. Even if you’re poor, or unemployed for a time, the state takes care of you. Comparatively, Danish poor have a high level of well-being.
  3. Wealth. High prosperity helps!
  4. Freedom. And personal freedom, too.
  5. Work. And on top of that, a healthy relationship to work! High levels of autonomy and job quality – that makes happiness at work?
  6. Democracy. Election turnout of over 80% – and voting is not mandatory!
  7. Civil society. Beyond a high degree of voluntary jobs, Danes also socialise more than average.
  8. Balance. A balance between work and leisure.

All in isolation, none of these factors are very special. There are countries that offer social security, that have a strong democratic culture, or where people have a good work-leisure balance. The special thing about Denmark, though, is that all these factor appear together. What is the secret?

measure-happiness-1

Image via How Stuff Works

Social security, but no happiness policy

I asked Meik Wiking, the Director of the Institute and the lead editor of The Happy Danes, whether there is an overall policy framework dedicated to the pursuit of happiness in Denmark, or whether it is just the consequence of high quality policies in the individual areas mentioned. Wiking answers:

Currently, there is no overall happiness framework (…) However, I do think that the Danish welfare state has been good at having citizen-centered policies and focusing on reducing UN-happiness: ensuring basic income, access to health care, education etc.

As the report explains, social security has contributed to the fact that the gap in happiness between rich and poor in Denmark is a lot smaller then, for instance, in the US.

Trust

Trust is the first factor that the Institute identified as contributing to happiness. That begs the question why trust is so high. Wiking points at the low level of corruption and the small size of Danish society:

One element is of course the low level of corruption. We experience that we can have trust in our system and in our society. We are treated equally and fairly according to the law. Also, I believe that the equality and the smallness of our society reduces the incentive for cheating. We all have more or less the same – and in a small society (where everybody knows each other) the penalty for cheating is higher. I know this is all very banal, but it is the best explanation I can see.

The positive emotions paradox

Danes don’t have a reputation for being the most cheerful people. And indeed, they score lower on ‘positive affect’ (or short term, intense, positive emotions) then for instance some Mediterranean or Latin American countries. But the scores are higher for overall quality of life, where happiness measurements are based on longer term and more evaluative judgements about life as a whole. Isn’t this paradoxical?

I do believe we should strive for having high levels on both the evaluative and the affective dimension in every country. Life is made up of moments and the two dimensions are linked. However, I am not sure we should call it a paradox that one country scores low in one and high in another. I think it is just evidence that we need a more nuanced language – and understanding – to be able to talk about, study and improve quality of life.

Thus, Danes are a happy people, even though positive emotions are lower than in some other countries. In the end, it simply means that there is a lot more to know about happiness. Even in Denmark, the Happiness Research Institute won’t be out of work.

Kartofler

One example of Danish trust: unmanned stands with potatoes, where you can take them freely and supposed to leave the money behind. Image courtesy of Happiness Research Institute

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The optimal income for happiness

9 December 2013 22:18 , Leave a Comment ,

What is the optimal income for happiness? How much happier are people with a large bank account than those who suffer through the last days of each month? Scientists have done a lot of effort to investigate the relation between money and happiness.

The conventional wisdom in happiness economics states that, indeed, happiness levels rise with income, to a certain point. After this point, the impact on happiness of an additional euro, pound are dollar is virtually zero: more money does not mean more happiness. But is it possible to exactly measure the cut-off point? That is, can we measure what the ideal income is, generating the best happiness bang for the buck?

Eugenio Proto of Warwick University and Aldo Rustichini of the University of Minnesota claim to have the answer. Their research attests that life satisfactions reaches its maximum level at an income level of $30,000, or about the level of Equatorial Guinea using World Bank data (though French people aren’t necessarily the happiest ones).

But Proto and Rustichini’s research reveals there is even more: after this point, people even become less happy. They  explain that this effect arises due to changes in what they label the ‘aspiration level’ of people with a below average income in rich countries.

Simply speaking, when incomes rise, the gap between the have-lots and have-less become bigger. When surrounded by wealthier people, people have higher aspirations for their own life, often irrationally> as the gap between reality and dreams increase, life satisfaction diminishes.

Their data set out the income level versus the likeliness of reporting the highest level of happiness. People in a country with an income per head of $5,600 are 12% less likely to report the maximum number than in a country with an income of $15,000. As incomes rise, the effect disappears. And after $30,000, the link even becomes negative.

What does this mean? Of course, you may consider moving to Equatorial Guinea if you live in a richer country but make less than the holy number of $30,000. Jokes aside, there is more  at stake here. Higher incomes aren’t necessarily a sign of progress. They might be caused by longer working hours, more overtime and less time for leisure, all factors that bring down happiness.

But maybe the real effect displayed by the study is the cost of inequality. Earlier studies have shown that it is not only the absolute figure of income that determines your happiness. It is also about your income relative to what you could make. If you make less than your friends, your colleagues, or than your did in a previous job, this might cause total misery. The moral of the story is simple: if countries care about our quality of life, they should seek to control income inequality. Equal countries, like Denmark, Norway and Sweden are all in the top-five of happiest nations. At least, their high government spending seem to be good for something. Money can’t buy you happiness, the adagium goes, but maybe their high taxes do?

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