Correct Answer - Option 3 : U-shaped
Everyone wants to be happy. There are few goals in life shared by so many people. Economic activity—the production of goods and services—is certainly not an end in itself but only has value in so far as it contributes to human happiness.
But, surprisingly enough, economists have long left the study of happiness to other disciplines, especially psychology. True, when the science of economics was founded by the classics, it was taken for granted that happiness can be measured and used to determine whether a particular economic policy raises or lowers the happiness of the people affected.
- Several studies have shown that the relation of happiness to age is U-shaped: The younger, but also the older people tend to be happier.
- Frey and Stutzer ran standard happiness regressions for both 1995 and 2000 and then conducted a T-test for equivalence to see if there was any significant difference in the results between the two years.
- As in many other countries, there is a quadratic relationship between age and happiness, a U-shaped curve with the lowest point on the curve being 47 years of age (this is slightly older than the turning point for most OECD countries and the United States, which is typically in the early forties). Men were happier than women in Russia, both in 1995 and in 2000. Higher levels of education are correlated with higher levels of happiness in Russia, as they are in most countries. Retirees are less happy than others, which reflects the oft-described plight of pensioners in Russia.
Socio-demographic factors of happiness
Studies were undertaken with data for many different countries and periods of time have identified the following main general results:
- Age affects happiness in a U-shaped manner. Young and old people report being happier than middle-aged people. The least happy people are aged between 30 and 35.
- Women report being slightly happier than men.
- Couples with and without children are happier than singles, single parents and people living in collective households.
- Foreigners report being significantly less happy than nationals.
- People with higher education indicate significantly higher well-being.
- Bad health significantly lowers self-reported happiness.
