How Much Does Happiness Cost Where You Live?

😃 Access Eazl’s Cost of Happiness by Country Database free at http://bit.ly/costofhappiness

In 2010, Nobel prize winning economists Daniel Khaneman and Sir Angus Deaton collaborated with Gallup to build a dataset of more than 450,000 people to ask a simple question: how much does happiness or “emotional well-being” cost? Their answer is about $75,000 per household in the US.

We wanted to make a tool that digital nomads, non-US residents, and curious people could reference to see what this “income and happiness threshold” is around the world. To do it, we used an economic construct called the Purchasing Power Parity (PPP) index which helps us account for the different power that one US dollar has (adjusted for currency exchange rates) across different countries.

While we didn’t use it for this video, one fun way that this is regularly done is by using the Big Mac Index–something that the Economist has been calculating since the 80s. It compares the price of Big Macs around the world to help establish the relative purchasing power of a dollar in different places.

Here are links related to this Brain Boost:

• Access Eazl’s Cost of Happiness Index at http://bit.ly/costofhappiness
• Read Daniel Khaneman and his co-author’s original research and related research at http://bit.ly/2dMCmr0
• Learn more about the Big Mac Index at http://econ.st/2jc58Ez
• Take Eazl’s free animated Macro Economics 101 course at http://bit.ly/2yniQa8
• See the Purchasing Power Parity (PPP) Index datasource at http://bit.ly/2hYddcr

Whether you’re working for someone else or for yourself, this should help you benchmark how much you need to earn before you start to focus on the bigger questions.

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Davis Jones

Davis Jones

Head of Product at Eazl
Davis Jones is a communicator, academic, and content maker with 9 years of experience in content marketing, recruitment, product management and everything else that it takes to launch businesses. Located in Chicago and San Francisco.
Davis Jones

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