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… and the Pursuit of Happiness - Institute of Economic Affairs

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<strong>…</strong> <strong>and</strong> <strong>the</strong> pursuit <strong>of</strong> happiness<br />

are more equal countries happier?<br />

Figure 14 Membership <strong>of</strong> community groups<br />

30<br />

1<br />

2<br />

25<br />

Canada New Zeal<strong>and</strong><br />

3<br />

4<br />

5<br />

20<br />

15<br />

Norway<br />

Finl<strong>and</strong><br />

Switzerl<strong>and</strong> UK<br />

6<br />

Australia<br />

USA<br />

Ne<strong>the</strong>rl<strong>and</strong>s<br />

7<br />

8<br />

Sweden<br />

France<br />

9<br />

10<br />

Germany<br />

10<br />

Slovenia<br />

Italy<br />

11<br />

Japan<br />

Spain<br />

12<br />

5<br />

13<br />

14<br />

0<br />

24 28 32 36 40 44<br />

15<br />

Inequality (GINI)<br />

16<br />

17<br />

18<br />

19<br />

20<br />

21<br />

22<br />

23<br />

24<br />

25<br />

26<br />

27<br />

28<br />

29<br />

30<br />

% <strong>of</strong> population involved in community group (index)<br />

organizations (sports clubs, charities, religious groups <strong>and</strong> arts<br />

groups). Figure 15 shows <strong>the</strong> Heritage Foundation’s measure <strong>of</strong><br />

economic freedom. Figure 16 shows <strong>the</strong> proportion <strong>of</strong> <strong>the</strong> population<br />

who agree with <strong>the</strong> statement ‘God is very important in my<br />

life’ <strong>and</strong> Figures 17 <strong>and</strong> 18 show two factors that negatively affect<br />

happiness: unemployment <strong>and</strong> divorce.<br />

The Sc<strong>and</strong>inavian nations all perform unusually well on <strong>the</strong><br />

measure <strong>of</strong> trust, but this does not seem to be <strong>the</strong> result <strong>of</strong> greater<br />

income equality since <strong>the</strong> overall correlation is weak <strong>and</strong> many<br />

Source: Statistics from <strong>Institute</strong> for Fiscal Studies (2010)<br />

<strong>of</strong> <strong>the</strong> ‘less equal’ countries have high levels <strong>of</strong> trust. There is a<br />

similarly weak correlation between inequality <strong>and</strong> community<br />

involvement, but in this instance <strong>the</strong> data show that <strong>the</strong> ‘less<br />

equal’ countries perform better. There are stronger correlations<br />

Figure 15 <strong>Economic</strong> freedom (Heritage Foundation 2011)<br />

<strong>Economic</strong> freedom (Heritage Foundation 2011)<br />

97<br />

90<br />

83<br />

Denmark<br />

76<br />

Japan<br />

Ne<strong>the</strong>rl<strong>and</strong>s<br />

Finl<strong>and</strong><br />

UK<br />

Sweden<br />

Belgium<br />

Austria<br />

Germany<br />

69<br />

Czech Rep Ṇorway<br />

Korea Spain<br />

62<br />

Hungary<br />

Slovenia<br />

Switzerl<strong>and</strong><br />

Australia<br />

Canada<br />

France<br />

Irel<strong>and</strong><br />

Greece Italy<br />

New Zeal<strong>and</strong><br />

Israel<br />

Portugal<br />

Hong Kong<br />

Singapore<br />

55<br />

24 28 32 36 40 44<br />

Inequality (GINI)<br />

Figure 16 ‘God is very important in my life’ (%)<br />

'God is very important in my life' (%)<br />

70<br />

60<br />

50<br />

40<br />

Canada<br />

Israel<br />

Irel<strong>and</strong> Portugal<br />

30<br />

Greece Italy<br />

Australia<br />

Singapore<br />

Switzerl<strong>and</strong><br />

UK<br />

Source: Statistics from <strong>Institute</strong> Austria for Fiscal Studies (2010)<br />

20<br />

New Zeal<strong>and</strong><br />

Hungary Belgium<br />

Finl<strong>and</strong><br />

Norway<br />

Slovenia<br />

10 Sweden<br />

Spain<br />

France<br />

Denmark<br />

Germany Ne<strong>the</strong>rl<strong>and</strong>s<br />

Japan Czech Rep.<br />

Korea<br />

Hong Kong<br />

0<br />

24 28 32 36 40 44<br />

Inequality (GINI)<br />

USA<br />

USA<br />

118 119

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