Economy, Values and Happiness in Norway

Why has the level of happiness in the Norwegian population not risen in parallel with the substantial increases in income and possessions in the period 1985–2001? An answer is sought by analysing data from a series of large representative surveys of the Norwegian population. Individual level correlations between indicators of health or family situation and happiness indicate that the measure of happiness is valid, and that happiness is not fully determined by personality traits, but affected also by changes in the circumstances of an individual. Several aspects of a person's economic situation turn out to have significant effects on happiness, in particular how the situation is subjectively experienced. Even if the development for some of these subjective indicators does not reflect the improvement in objective economic conditions, there is sufficient positive change to expect an increase in the level of happiness. The stability in aggregate happiness means that counteracting influences must have been present. One such factor is value orientation. An increasing tendency for Norwegians to give priority to income and material possessions appears to have had an adverse effect on happiness towards the end of the last millennium.