SOCIOECONOMIC DETERMINANTS OF HAPPINESS ACROSS NATIONS DURING THE COVID-19 ERA: AN ECONOMETRIC ANALYSIS

Abstract

The COVID-19 pandemic has brought about unprecedented global challenges, affecting various aspects of people's lives, including their happiness and well-being. This empirical study explored the socio-economic determinants of happiness across 107 countries, encompassing 78 developing and 29 developed nations, particularly focusing on the tumultuous year 2020. To empirically investigate these determinants, the study employed the ordinary least squares (OLS) technique, complemented by rigorous diagnostic tests. The findings reveal that economic growth, social progress, unemployment, and inflation collectively play pivotal roles in shaping happiness on a global scale. Notably, this research endeavor uncovered intriguing variations between developing and developed countries. In developing nations, social progress was found to be on the rise, while inflation and unemployment were identified as factors that decreased happiness. In contrast, the happiness of developed countries was positively influenced by economic growth, social progress, inflation, and life expectancy at birth, while an increase in unemployment had an adverse effect. These results hold significant policy implications since policymakers are encouraged to consider the implementation of social programs aimed at enhancing both income levels and economic freedom for their populations. Additionally, measures to control inflation and reduce unemployment rates are crucial steps towards increasing happiness levels in both developing and developed nations. This study underscores the vital importance of non-economic determinants in shaping the overall happiness of populations, shedding light on the multifaceted nature of well-being in the face of unprecedented global challenges.