How much happier would you be if were given a 10% raise?
While money can be a crucial indicator of happiness at lower income levels, Visual Capitalist's Iman Ghosh notes that studies have found that as incomes rise, money becomes a less important part of the overall happiness equation.
In fact, researchers see happiness as a complex measure that involves many variables outside of material wealth, including social support, freedom, and health.
MEASURING GLOBAL HAPPINESS
Today’s chart uses data from the World Happiness Report 2018 to measure and understand which countries report feeling the most and least happy.
Courtesy of: Visual Capitalist
WHAT CONTRIBUTES TO HAPPINESS?
The six key variables used by researchers in this report on global happiness include:
GDP per capita
Healthy life expectancy
Freedom of choice
Perceptions of corruption
While average income and life expectancy definitely carry their weight in explaining happiness levels, what’s more interesting are the Gallup World Poll (GWP) questions about the other, more subjective variables.
“If you were in trouble, do you have relatives or friends you can count on to help you whenever you need them?”
Freedom to make life choices
“Are you satisfied or dissatisfied with your freedom to choose what you do with your life?”
“Have you donated money to a charity in the past month?”
Perceptions of corruption
“Is corruption widespread throughout the government or not?”
“Is corruption widespread within businesses or not?”
HOW HAPPY IS THE WORLD?
The top tier of happiest countries happen to be Nordic, with Finland, Norway, Denmark, and Iceland making it into the top five. Aside from having a common geographic location, these countries are also well-known for their social safety nets, using a high tax burden to fund government services such as education and healthcare.
A surprising entry near the top of the list might be Costa Rica. It’s the happiest country in the Latin American region, despite persisting income inequality issues. Although it has a lower GDP per capita than other high-ranking entries, the country has more than made up for it through social support; Costa Rica has invested significantly in education and health as a proportion of GDP, and the nation is also known for housing a culture that forms solid social networks of friends, families and neighborhoods.
On the other hand, 18 of the least happy countries are concentrated on the African continent. GDP per capita varies intensely among the bottom countries, and many report a lack of freedom overall. A silver lining is that social support is relatively stable, and there have been steady improvements over time.
Finally, the aftermath of the 2008 financial crisis has had a ripple effect on global happiness. The report demonstrates where the most and fewest advances have been made.
Happiness is on the upswing, as the West African nation climbs 17 places to demonstrate the most improvement.
Meanwhile, the South American country plummeted even further, in part from socio-political changes and dramatic hyperinflation.
Where does your country fare on this scale?
Eudaimonia [happiness] is the meaning and the purpose of life, the whole aim and end of human existence.