How does income affect happiness?

About the lecture

In this module, we look at how income affects happiness. In particular, we will focus on: (i) the Richard Easterlin Paradox of 1974; (ii) what average life satisfaction at different income levels looks like in the UK; (iii) the relationship between income and happiness; (iv) why taxation is not to blame for happiness; and (v) how the business cycle affects happiness.

About the lecturer

Professor Lord Richard Layard is a Professor of Economics at the London School of Economics. He specialises in labour economics, with particular focus on wellbeing, happiness, and how better mental health can improve our social and economic life. He has written widely on this topic, including The Origins of Happiness: The science of wellbeing over the life course (2018) and Can we be happier? (2020). He is also the co-editor (with John F. Helliwell and Jeffrey Sachs) of the World Happiness Report.