Investigating the Correlation Between Happiness and Macroeconomic Variables

Sammanfattning: This thesis aimed to find the correlation between happiness and macroeconomic variables using multiple linear regression analysis. The macroeconomic variables considered were GPD per capita, the Gini coefficient, unemployment rate, tax revenue of GDP, government spending on education and inflation. The data for self-reported happiness were collected from a global happiness survey. GDP per capita, the Gini coefficient and government expenditure on education were found to be positively correlated with happiness. Meanwhile, the unemployment rate and tax revenue of GDP showed a negative correlation. Inflation were found to not have a statistically significant relationship with happiness. Furthermore, the Gini coefficient was investigated more closely since the positive correlation was partially contradictory to previous research within the field. A simple linear regression analysis was therefore performed, which showed a negative relationship between happiness and the Gini coefficient. This could indicate that important regressors were not included in the main model. In conclusion, this thesis showed that the investigated macroeconomic variables have a statistically significant impact on the happiness of individuals.