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Happiness Economics

In Pursuit of Happiness

What makes a life worthwhile? For some, happiness lies in a warm bath or a cup of coffee. For others, it’s found in connection, health, or fulfilling lifelong dreams. But how does happiness relate to broad prosperity? And what happens when we continue to confuse economic growth with genuine progress? According to Martijn Burger, Professor of Economics & Happiness at Erasmus University, happiness deserves a much more central place in the conversation about broad prosperity. “Scientifically, we often define happiness as the balance between satisfaction with one’s life and the experience of positive emotions,” he explains. “In general, happy people experience more positive than negative feelings—though negative emotions are by no means meaningless. They can help us appreciate the good times even more deeply.”

Happiness is not an afterthought

Public discourse often treats happiness as a private, elusive matter—something beyond the reach of policy or economics. But that view is too limited, Burger argues. “Happiness is closely connected to broad prosperity. It doesn’t depend solely on individual choices, but also on external conditions: economic stability, social relationships, health, and how we design our society.”

And that’s where the tension lies. “In affluent countries, economic growth contributes very little to people’s overall happiness,” he notes. “In fact, the increased work pressure, social isolation, and environmental damage associated with growth often have the opposite effect. Yet policymakers and organisations continue to operate under the assumption that more income or productivity automatically leads to better lives.”

From profit to purpose

This also holds true in the workplace. Job satisfaction has a direct impact on productivity, absenteeism, and employee retention—but is still too often seen as a luxury or HR responsibility. “Many organisations rely on short-term interventions like mindfulness or wellness weeks,” says Burger. “But without a shift in organisational culture, these efforts remain superficial. Real change requires structural listening and creating space for meaningful work.”

Culture shapes what we call happiness

Burger also stresses that happiness is not a universal concept—and that our metrics are culturally biased. “Most of the popular global happiness rankings rely on a Western definition of happiness: individual, cognitive, and often tied to status or achievement. But in many African or Asian cultures, happiness is more about calm, harmony, and connection to the community. There, you might hear: ‘I cannot be happy if my community is not happy.’”

This calls for a more inclusive approach to happiness. “We must acknowledge that the Western lens is not neutral. Our measurement tools need to be more culturally responsive. Only then can we craft policies that truly reflect what people value in life.”

The role of social connection

Another often overlooked ingredient of happiness is social cohesion—especially in urban areas. “Social fabric in cities has been steadily eroding in recent decades,” Burger notes. “What was once natural—meeting each other in the neighbourhood, feeling rooted in your surroundings—has largely disappeared due to individualisation and gentrification. And once it’s gone, it’s incredibly difficult to rebuild.”

According to Burger, this is a challenge for governments. “Happiness isn’t just about economic instruments. It requires investment in places of connection, in trust, and in community. These are hard to quantify, but essential to our well-being.”

The courage to choose happiness

Broad prosperity demands difficult choices: between growth and rest, between returns and relationships. Martijn Burger calls for treating happiness not as a side effect, but as a guiding principle. “We must dare to ask: what will generate the most happiness? That applies to public policy, to organisations, and to ourselves. Because in the end, we all want the same thing: a long and happy life.”

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About Martijn Burger

As Unit Manager of Work Training Companies at Stroomopwaarts MVS, René connects individuals distanced from the labour market with employers committed to socially responsible entrepreneurship. With many years of experience as an independent entrepreneur and director in the staffing industry, he knows how to create space for development, job satisfaction, and sustainable participation.

We must dare to ask: what will generate the most happiness?