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Part of the six-volume Wellbeing: A Complete Reference Guide, this is a comprehensive look at the economics of wellbeing with coverage of history, research, policy, and practice.

 

  • Examines the challenges inherent in studying and measuring wellbeing from an economic perspective
  • Discusses strategies and interventions to improve wellbeing across the lifespan and in different settings
  • Addresses the potential economic benefits for governments and policymakers of actively investing in initiatives to improve wellbeing, from the workplace to the home to the natural environment
  • Emphasizes the need to strengthen the evidence base for the economics of wellbeing and improve methods for translating research into policy and practice

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Table of Contents

Wellbeing: A Complete Reference Guide

Title Page

Copyright

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

The Volumes in the Series

References

1: Introduction

Making the Economic Case for Investing in Wellbeing

References

Part 1: Perspectives on the Economics of Wellbeing

2: A Short History of Wellbeing Research

Introduction

Ancient Greece

The Enlightenment: Seventeenth- and Eighteenth-Century Europe

Looking to Other Societies: The Nineteenth Century

Psychology and Wellbeing

Wellbeing in the Twentieth Century

Conclusion

References

Further Reading

3: Income and Wellbeing

Introduction

Subjective Wellbeing

Income and Happiness

Income, Wellbeing, and the Easterlin Paradox

Cross-Country Analysis of Income and Wellbeing

Implications and Discussion

References

Further Reading

4: Does Money Buy Me Love?

Introduction

Prior Studies and Conceptual Model

Wellbeing and Sustainability Data

Wellbeing, Sustainability, and International Migration

Summary and Conclusions

Acknowledgment

References

Further Readings

5: The Impact of the Great Recession on Economic Wellbeing

Introduction

The Index of Economic Wellbeing: Motivation and Framework

The Differing Impacts of the Great Recession

Trends in the IEWB in Canada, Germany, Spain, and the United States 1995 to 2010

Divergences and Commonalities in Economic Wellbeing within Countries: 2007–2010

The Relationship between Changes in the IEWB, Its Components, and GDP per Capita or Unemployment

Conclusion

Addendum

References

6: Was the Economic Crisis of 2008 Good for Icelanders?

Introduction

Background

Results

Conclusion

Acknowledgments

References

Appendix

7: Mental Health

Wellbeing

Mental Health

The Scale of Mental Illness

Economic Costs

Cost-Effective Treatments

Undertreatment

Social Sciences

Conclusion

References

Further Reading

Part 2: Promoting Wellbeing: The Economic Case for Action

8: Investing in the Wellbeing of Young People

Introduction

Why Is Economics Relevant to Child and Adolescent Wellbeing?

What Do We Know about the Long-Term Impacts of Wellbeing on Young People?

What Do We Know about the Economic Benefits of Promoting and Protecting the Wellbeing of Young People?

Conclusion

References

Further Readings

9: Investing in Wellbeing in the Workplace

Why Should We Be Interested in Mental Health and Wellbeing at Work?

What Do We Know about Actions to Promote Mental Health and Wellbeing in the Workplace?

What Do We Know about Cost-Effective Actions to Help People with Mental Health Problems Remain in Employment?

How Can We Facilitate Greater Investment in Workplace Mental Health and Wellbeing Promotion?

Conclusions

References

Further Readings

10: Promoting the Health and Wellbeing of Older People

Introduction

Why Is Economics Relevant to the Wellbeing of Older People?

What Are the Potential Economic Payoffs of Focusing on Wellbeing?

What Are the Economic Consequences of Poor Wellbeing in Older People?

Are Measures to Protect and Promote Wellbeing in Older People Cost-Effective?

Conclusion

References

Further Readings

11: Promoting and Protecting Mental Wellbeing during Times of Economic Change

What Are the Potential Impacts on Mental Health and Wellbeing Arising from Economic Shocks?

What Can Be Done to Protect Mental Health and Wellbeing?

The Challenge of Implementation

Conclusion: Every Cloud Has a Silver Lining

References

Further Readings

12: Making Use of Evidence from Wellbeing Research in Policy and Practice

Introduction

Getting the Measurement Right

How Can Wellbeing Inform Policy and Practice?

What Needs to Be Done to Facilitate the Use of Wellbeing Information in Policy and Practice?

Conclusion

References

Index

Wellbeing: A Complete Reference Guide

Volume I: Wellbeing in Children and Families

Edited by Susan H. Landry and Cary L. Cooper

Volume II: Wellbeing and the Environment

Edited by Rachel Cooper, Elizabeth Burton, and Cary L. Cooper

Volume III: Work and Wellbeing

Edited by Peter Y. Chen and Cary L. Cooper

Volume IV: Wellbeing in Later Life

Edited by Thomas B. L. Kirkwood and Cary L. Cooper

Volume V: The Economics of Wellbeing

Edited by David McDaid and Cary L. Cooper

Volume VI: Interventions and Policies to Enhance Wellbeing

Edited by Felicia A. Huppert and Cary L. Cooper

This edition first published 2014

© 2014 John Wiley & Sons Ltd

Registered Office

John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial Offices

350 Main Street, Malden, MA 02148-5020, USA

9600 Garsington Road, Oxford, OX4 2DQ, UK

The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

For details of our global editorial offices, for customer services, and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell.

The right of David McDaid and Cary L. Cooper to be identified as the authors of the editorial material in this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book.

Limit of Liability/Disclaimer of Warranty: While the publisher and authors have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

Library of Congress Cataloging-in-Publication Data

The economics of wellbeing/volume editor, David McDaid; editor-in-chief, Cary L. Cooper.

    pages cm. – (Wellbeing : a complete reference guide; volume V)

Includes bibliographical references and index.

ISBN 978-1-118-60838-8 (cloth : alk. paper)

1. Health behavior–Economic aspects. 2. Economics–Sociological aspects. 3. Well-being I. McDaid, David.

RA776.9.E3266 2014

362.1–dc23

2013030509

A catalogue record for this book is available from the British Library.

Cover image: © Ekely / Getty

Cover design by cyandesign.co.uk

About the Editors

David McDaid is Senior Research Fellow in Health Policy and Health Economics at LSE Health and Social Care and the European Observatory on Health Systems and Policies at the London School of Economics and Political Science, U.K. He is involved in a wide range of work on the economics of mental and physical health and wellbeing in the United Kingdom, Europe, and beyond. He has served as an advisor to organizations including the European Commission, World Health Organization, and national governments. He has published over 200 peer-reviewed papers and reports, including studies looking at the case for investing in measures to promote and protect health and wellbeing. He is coeditor of Mental health policy and practice across Europe (2007) and coauthor of Because it's worth it: A practical guide to conducting economic evaluations in the social welfare field (2003).

Cary L. Cooper, CBE, is Distinguished Professor of Organizational Psychology and Health at Lancaster University Management School, U.K. He is the author/editor of over 150 books, has written over 400 scholarly articles for academic journals, and is a frequent contributor to national newspapers, TV, and radio. He is the Chair of the Academy of Social Sciences (comprised of 46 learned societies in the social sciences, with nearly 90,000 social scientists), President of RELATE, President of the Institute of Welfare, and immediate past President of the British Association of Counselling and Psychotherapy. He was the Founding President of the British Academy of Management, Founding Editor of the Journal of Organizational Behavior, and is currently Editor-in-Chief of the international scholarly journal Stress & Health. He has received honorary doctorates from a number of universities (e.g., University of Sheffield, Aston University, and Heriot-Watt University). He has been awarded honorary fellowships by the Royal College of Physicians, Royal College of Physicians of Ireland, British Psychological Society, European Academy of Occupational Health Psychology, and Institute of Occupational Safety and Health. In 2010 Professor Cooper was awarded the Lord Dearing Lifetime Achievement Award at the The Times Higher Education Awards for his distinguished contribution to higher education. He was lead scientist on the U.K. Government's Foresight program on Mental Capital and Wellbeing, which had a major impact in the United Kingdom and Europe. Professor Cooper was Chair of the Global Agenda Council on Chronic Diseases in the World Economic Forum in 2009–2010. In 2012, HR magazine voted him the Fourth Most Influential HR Thinker. In 2001, he was awarded a CBE by the Queen for his contribution to occupational health.

Contributors

Tinna Laufey Ásgeirsdóttir, University of Iceland, Iceland
Cary L. Cooper, Lancaster University, U.K.
Hope Corman, Rider University, U.S.A.
Candice Currie, University of St Andrews, U.K.
Anna K. Forsman, National Institute for Health and Welfare (THL), Finland and Nordic School of Public Health NHV, Sweden
Arthur Grimes, Motu and Economic Public Policy Research, New Zealand
Brendan Kennelly, NUI Galway, Ireland
Richard Layard, London School of Economics and Political Science, U.K.
David McDaid, London School of Economics and Political Science, U.K.
Kelly Noonan, Rider University, USA
Þórhildur Ólafsdóttir, University of Iceland, Iceland
Lars Osberg, Dalhousie University, Canada
Les Oxley, University of Waikato, New Zealand
A-La Park, London School of Economics and Political Science, U.K.
Nancy E. Reichman, Robert Wood Johnson Medical School, U.S.A.
Andrew Sharpe, Centre for the Study of Living Standards, Canada
Laura Stoll, New Economics Foundation, U.K.
Nicholas Tarrant, GT Research and Consulting, New Zealand
Kristian Wahlbeck, Finnish Association for Mental Health, Finland
Cara Zanotti, University of South Australia, Australia

Full Contents of Wellbeing: A Complete Reference Guide

Volume I Wellbeing in Children and Families

Edited by Susan H. Landry and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

1 Introduction

Susan H. Landry

Part 1 The Development of Early Social and Cognitive Skills Important for Child Wellbeing

2 Children's Self-Regulation and Executive Control: Critical for Later Years

Caron A. C. Clark, Miriam M. Martinez, Jennifer Mize Nelson, Sandra A. Wiebe, and Kimberly Andrews Espy

3 Children's Emotion Regulation in Classroom Settings

C. Cybele Raver

4 Early Math and Literacy Skills: Key Predictors of Later School Success

Greg J. Duncan, Chantelle Dowsett, and Joshua F. Lawrence

5 Children's Intrinsic Motivation to Learn: Does It Decline over Time and, If So, Why?

Verena Freiberger and Birgit Spinath

Part 2 Parenting and Children's Development

6 Parents' Role in Infants' Language Development and Emergent Literacy

Catherine S. Tamis-LeMonda, Rufan Luo, and Lulu Song

7 Can Parents Be Supported to Use a Responsive Interaction Style with Young Children?

Susan H. Landry

8 Parenting and Executive Function: Positive and Negative Influences

Claire Hughes, Gabriela Roman, and Rosie Ensor

9 The Nature of Effective Parenting: Some Current Perspectives

Joan E. Grusec, Dilek Sarita, and Ella Daniel

10 Parenting and Early Intervention: The Impact on Children's Social and Emotional Skill Development

Catherine C. Ayoub, Jessical Dym Bartlett, and Mallary I. Swartz

Part 3 School and Child Care: Settings that Impact Child and Family Wellbeing

11 High-Risk Home and Child-Care Environments and Children's Social-Emotional Outcomes

Lisa S. Badanes and Sarah Enos Watamura

12 Classroom Peer Relations as a Context for Social and Scholastic Development

Gary W. Ladd, Becky Kochenderfer-Ladd, and Casey M. Sechler

13 The Importance of Quality Prekindergarten Programs for Promoting School Readiness Skills

Andrew J. Mashburn

14 Consistent Environmental Stimulation from Birth to Elementary School: The Combined Contribution of Different Settings on School Achievement

Robert C. Pianta

Part 4 Stress and Family and Child Wellbeing

15 Poverty, Public Policy, and Children's Wellbeing

Aletha C. Huston

16 Early Life Stress and Neurobehavioral Development

Sarah Stellern and Megan R. Gunnar

17 Neighborhood Effects and Young Children's Outcomes

Dafna Kohen and Leanne Findlay

18 The Family Check-Up: A Tailored Approach to Intervention with High-Risk Families

Anne M. Gill, Thomas J. Dishion, and Daniel S. Shaw

Index

Volume II Wellbeing and the Environment

Edited by Rachel Cooper, Elizabeth Burton, and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

1 Wellbeing and the Environment: An Overview

Rachel Cooper

Part 1 Wellbeing and the Neighborhood

2 Urban Neighborhoods and Mental Health across the Life Course

Erin Gilbert and Sandro Galea

3 The Impact of the Local Social and Physical Local Environment on Wellbeing

Anne Ellaway

4 Density and Mental Wellbeing

Christopher T. Boyko and Rachel Cooper

5 Neighborhoods and Social Interaction

Scott C. Brown and Joanna Lombard

6 Living in the City: Mixed Use and Quality of Life

Graeme Evans

7 “We Live Here Too”… What Makes a Child-Friendly Neighborhood?

Karen E. Martin and Lisa J. Wood

8 A Step Too Far? Designing Dementia-Friendly Neighborhoods

Lynne Mitchell

9 Walkable Neighborhoods: Principles, Measures, and Health Impacts

Tim G. Townshend

10 Quality of Urban Spaces and Wellbeing

Mags Adams

Part 2 Wellbeing and Buildings

11 Children and the Physical Environment

Lorraine E. Maxwell and Gary W. Evans

12 Wellbeing and the School Environment

Andy Jones and Flo Harrison

13 The Built Housing Environment, Wellbeing, and Older People

Rachael Dutton

14 Workplace and Wellbeing

Jeremy Myerson

15 Linking the Physical Design of Health-Care Environments to Wellbeing Indicators

Sarah Payne, Rachel Potter, and Rebecca Cain

Part 3 Wellbeing and Green Spaces

16 Wellbeing and Green Spaces in Cities

William Sullivan

17 Environmental Interaction and Engagement: Supporting Wellbeing

Richard Coles

Part 4 Wellbeing and the Environment: Other Factors and the Future

18 Crime and the Urban Environment: The Implications for Wellbeing

Caroline L. Davey and Andrew B. Wootton

19 Transport and Wellbeing

Nick Tyler

20 Air Quality and Wellbeing

Ben Croxford

21 Implications of Low-Carbon Design of Housing for Health and Wellbeing: A U.K. Case Study

Michael Davies, Ian Hamilton, Anna Mavrogianni, Rokia Raslan, and Paul Wilkinson

22 Cobenefits of Insulating Houses: Research Evidence and Policy Implications

Philippa Howden-Chapman and Nicholas Preval

23 The Multiple Pathways between Environment and Health

Marketta Kyttä and Anna Broberg

24 Summary: Wellbeing and the Environmental Implications for Design

Rachel Cooper and Elizabeth Burton

Index

Volume III Work and Wellbeing

Edited by Peter Y. Chen and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

Part 1 Introduction

1 Introduction: From Stress to Happiness

Peter Y. Chen and Cary L. Cooper

2 Conceptualizing and Measuring Wellbeing at Work

Cynthia D. Fisher

Part 2 Resources, Coping, and Control

3 Job Demands–Resources Theory

Arnold B. Bakker and Evangelia Demerouti

4 Positive Psychology and Coping: Towards a Better Understanding of the Relationship

Philip Dewe

5 The Role of Workplace Control in Positive Health and Wellbeing

Erin M. Eatough and Paul E. Spector

Part 3 Happy Workers and Happy Organizations

6 The Happy Worker: Revisiting the “Happy–Productive Worker” Thesis

Peter Hosie and Nada ElRakhawy

7 Organizational Characteristics of Happy Organizations

Bret L. Simmons

Part 4 Character and Wellbeing

8 Character and Wellbeing

Thomas A. Wright and Tyler Lauer

9 Stress, Health, and Wellbeing in Practice: Workplace Leadership and Leveraging Stress for Positive Outcomes

James Campbell Quick, Joel Bennett, and M. Blake Hargrove

Part 5 Organizational Strategies to Promote Wellbeing

10 Cancer, Work, and the Quality of Working Life: A Narrative Review

Tom Cox, Sara MacLennan, and James N'Dow

11 Lead Well, Be Well: Leadership Behaviors Influence Employee Wellbeing

Jennifer Robertson and Julian Barling

12 Organizational Coping Strategies and Wellbeing

Gordon Tinline and Matthew Smeed

13 Workplace Mistreatment: Recent Developments in Theory, Research, and Interventions

Michael Hanrahan and Michael P. Leiter

14 The Sustainable Workforce: Organizational Strategies for Promoting Work–Life Balance and Wellbeing

Ellen Ernst Kossek, Monique Valcour, and Pamela Lirio

15 Development of a Theoretically Grounded Model of Sexual Harassment Awareness Training Effectiveness

Lisa M. Kath and Vicki J. Magley

16 The Working Wounded: Stigma and Return to Work

Lori Francis, James E. Cameron, E. Kevin Kelloway, Victor M. Catano, Arla L. Day, and C. Gail Hepburn

17 Job Stress in University Academics: Evidence from an Australian National Study

Anthony H. Winefield

Part 6 From Research to National Policy

18 Longitudinal Research in Occupational Stress: A Review of Methodological Issues

Robert C. Brusso, Konstantin P. Cigularov, and Rachel C. Callan

19 Measuring Wellbeing in Modern Societies

Paul Allin

Index

Volume IV Wellbeing in Later Life

Edited by Thomas B. L. Kirkwood and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

1 Introduction: Wellbeing in Later Life

Cary L. Cooper and Thomas B. L. Kirkwood

Part 1 Longevity and Wellbeing

2 The Changing Demographic Context of Aging

Roland Rau and James W. Vaupel

3 Biological Determinants and Malleability of Aging

Thomas B. L. Kirkwood

4 Wellbeing as Experienced by the Very Old

Carol Jagger and Katie Brittain

Part 2 Factors Influencing Wellbeing

5 Psychological Wellbeing in Later Life

Kate M. Bennett and Laura K. Soulsby

6 Nutrition and Lifelong Wellbeing

C. Alexandra Munro and John C. Mathers

7 Physical Activity, Exercise, and Aging

Grainne S. Gorman, Josh Wood, and Michael I. Trenell

8 Capability and Independency in Later Life

John Bond

9 Combating Isolation Through Technology in Older People

Peter Gore

10 Wellbeing and Vitality in Later Life: The Role of the Consumer Industry

Michael Catt and Frans J. G. van der Ouderaa

11 Education and its Role in Wellbeing

Jim Soulsby

Part 3 Wellbeing at the End of Life

12 The Threat to Wellbeing from Cognitive Decline

Louise Robinson and Lynne Corner

13 When Vitality Meets Longevity: New Strategies for Health in Later Life

Rudi G. J. Westendorp, Bert Mulder, A. J. Willem van der Does, and Frans J. G. van der Ouderaa

14 Maintaining Wellbeing Through the End of Life

Julian C. Hughes

Part 4 Comparative Perspectives on Wellbeing

15 Cultures, Aging, and Wellbeing

Ngaire Kerse, Mere Kpa, Ruth Teh, and Lorna Dyall

16 Wellbeing in the Oldest Old and Centenarians in Japan

Yasuyuki Gondo, Yasumichi Arai, and Nobuyoshi Hirose

17 Wellbeing in Later Life in Eighteenth-Century England

Helen Yallop

Appendix

Foresight Mental Capital and Wellbeing Project: Mental Capital Through Life: Future Challenges

Thomas B. L. Kirkwood, John Bond, Carl May, Ian McKeith, and Min-Min Teh

Index

Volume V The Economics of Wellbeing

Edited by David McDaid and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

1 Introduction

David McDaid and Cary L. Cooper

Part 1 Perspectives on the Economics of Wellbeing

2 A Short History of Wellbeing Research

Laura Stoll

3 Income and Wellbeing: A Selective Review

Brendan Kennelly

4 Does Money Buy Me Love? Testing Alternative Measures of National Wellbeing

Arthur Grimes, Les Oxley, and Nicholas Tarrant

5 The Impact of the Great Recession on Economic Wellbeing: How Different Are OECD Nations and Why?

Lars Osberg and Andrew Sharpe

6 Was the Economic Crisis of 2008 Good for Icelanders? Impact on Health Behaviours

Tinna Laufey Ásgeirsdóttir, Hope Corman, Kelly Noonan, órhildur Ólafsdóttir, and Nancy E. Reichman

7 Mental Health: A New Frontier for Labor Economics

Richard Layard

Part 2 Promoting Wellbeing: The Economic Case for Action

8 Investing in the Wellbeing of Young People: Making the Economic Case

David McDaid, A-La Park, Candice Currie, and Cara Zanotti

9 Investing in Wellbeing in the Workplace: More Than Just a Business Case

David McDaid and A-La Park

10 Promoting the Health and Wellbeing of Older People: Making an Economic Case

A-La Park, David McDaid, Anna K. Forsman, and Kristian Wahlbeck

11 Promoting and Protecting Mental Wellbeing during Times of Economic Change

David McDaid and Kristian Wahlbeck

12 Making Use of Evidence from Wellbeing Research in Policy and Practice

David McDaid

Index

Volume VI Interventions and Policies to Enhance Wellbeing

Edited by Felicia A. Huppert and Cary L. Cooper

About the Editors

Contributors

Full Contents of Wellbeing: A Complete Reference Guide

Introduction to Wellbeing: A Complete Reference Guide

Introduction to this Volume

1 The State of Wellbeing Science: Concepts, Measures, Interventions, and Policies

Felicia A. Huppert

Part 1 Individual and Group Interventions across the Life Course

2 Parenting Interventions to Promote Wellbeing and Prevent Mental Disorder

Sarah Stewart-Brown

3 Promoting Mental Health and Wellbeing in Schools

Katherine Weare and Melanie Nind

4 An Exploration of the Effects of Mindfulness Training and Practice in Association with Enhanced Wellbeing for Children and Adolescents: Theory, Research, and Practice

Christine Burke

5 MindMatters: Implementing Mental Health Promotion in Secondary Schools in Australia

Louise Rowling and Trevor Hazell

6 A Systematic Review of Mental Health Promotion in the Workplace

Czesław Czabała and Katarzyna Charzyska

7 Wellbeing Begins with “We”: The Physical and Mental Health Benefits of Interventions that Increase Social Closeness

Bethany E. Kok and Barbara L. Fredrickson

8 The Experience Corps®: Intergenerational Interventions to Enhance Wellbeing Among Retired People

George W. Rebok, Michelle C. Carlson, Kevin D. Frick, Katherine D. Giuriceo, Tara L. Gruenewald, Sylvia McGill, Jeanine M. Parisi, William A. Romani, Teresa E. Seeman, Elizabeth K. Tanner, and Linda P. Fried

9 Enhancing Mental Health and Mental Wellbeing in Older People: Important Concepts and Effective Psychosocial Interventions

Anna K. Forsman, Eija Stengård, and Kristian Wahlbeck

Part 2 Interventions to Create Positive Organizations and Communities

10 Wellbeing as a Business Priority: Experience from the Corporate World

Catherine Kilfedder and Paul Litchfield

11 The Power of Philanthropy and Volunteering

Sara Konrath

12 Community Change: The Complex Nature of Interventions to Promote Positive Connections

Sue Roffey and Jacqueline Barnes

13 The Health and Wellbeing Effects of Active Labor Market Programs

Adam P. Coutts, David Stuckler, and David J. Cann

Part 3 The Policy Perspective

14 Creating Good Lives Through Computer Games

Daniel Johnson, Peta Wyeth, and Penny Sweetser

15 Retooling for Wellbeing: Media and the Public's Mental Health

Marten W. deVries

16 Policy and Wellbeing: The U.K. Government Perspective

David Halpern

17 Measuring what Matters

Juliet Michaelson, Charles Seaford, Saamah Abdallah, and Nic Marks

18 Mental Health and Wellbeing at the Top of the Global Agenda

Eva Jané-Llopis, Peter Anderson, and Helen Herrman

19 How can Subjective Wellbeing be Improved?

John F. Helliwell

Index

Introduction to Wellbeing: A Complete Reference Guide

Cary L. Cooper

Lancaster University, U.K.

This series of six volumes explores one of the most important social issues of our times, that of how to enhance the mental wellbeing of people, whether in the developed, developing, or underdeveloped world, and across the life course from birth to old age. We know that 1 in 4–6 people in most countries in the world suffer from a common mental disorder of anxiety, depression, or stress. We also know that mental ill health costs countries billions of dollars per annum. In the United Kingdom, for example, mental health-care costs have amounted to over £77 billion per annum, the bill for sickness absence and presenteeism (people turning up to work ill or not delivering due to job stress) in the workplace is another £26 billion, and the costs of dementia will rise from £20 billion to an estimated £50 billion in 25 years' time (Cooper, Field, Goswami, Jenkins, & Sahakian, 2009). In Germany, the leading cause of early retirement from work in 1989 was musculoskeletal disease but by 2004 it was stress and mental ill health, now representing 40% of all early retirements (German Federal Health Monitoring, 2007). In many European countries (e.g., Finland, Holland, Norway, and Switzerland) the cost of lost productive value due to lack of mental wellbeing is a significant proportion of gross domestic product (McDaid, Knapp, Medeiros, & MHEEN Group, 2008). Indeed, the costs of depression alone in the European Union were shown to be €41 billion, with €77 billion in terms of lost productivity to all the economies (Sobocki, Jonsson, Angst, & Rehnberg, 2006).

The issue of wellbeing has been around for sometime but has been brought to the fore more recently because of the global recession and economic downturn, which have made the situation worse (Antoniou & Cooper, 2013). But it was as early as 1968 that politicians began to talk about the inadequacy of gross national product as a measure of a society's success. In a powerful speech by Bobby Kennedy at the University of Kansas, when he was on the campaign trail for the Democratic Party nomination for U.S. President, he reflected:

But even if we act to erase material poverty, there is another greater task, it is to confront the poverty of satisfaction—purpose and dignity—that afflicts us all. Too much and for too long, we seemed to have surrendered personal excellence and community values in the mere accumulation of material things. Our gross national product, now, is over $800 billion a year, but that gross national product—if we judge the United States of America by that—that gross national product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in the chaotic sprawl. It counts napalm and counts nuclear warheads and armoured cars for the police to fight the riots in our cities. …Yet the GNP does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile.

University of Kansas, March 18, 1968,http://www.americanswhotellthetruth.org/portraits/robert-f-kennedy

Since that time there have been numerous studies to show that the wealth of a country is not related to its happiness (Cooper & Robertson, 2013); indeed, as you earn far beyond your means you may become less happy or content. More recently, we have had politicians like former President Sarkozy of France, Prime Minister Cameron of the United Kingdom, and the King of Bhutan extoll the virtue of gross national wellbeing; that is, that the goal of a nation's politicians should be to enhance wellbeing among its citizens, with gross national product being only one indicator of a country's success. Indeed, Prime Minister Cameron has instituted an annual assessment of this through the U.K. Office of National Statistics which measures wellbeing among a large sample of the U.K. population, publishing the results, highlighting concerns, and ultimately considering policies to deal with them. The World Economic Forum of leading global companies, nongovernmental organizations, international bodies, and global charities now has one of its Global Agenda Councils on “mental health and wellbeing.” Happiness and wellbeing indices abound (e.g., The Happy Planet), and many countries are being compared and assessed on a range of quality-of-life metrics. Indeed, in April 2012, 79 countries in the General Assembly of the United Nations signed the Bhutan Agreement, supporting the view that an overarching goal of a country should be to enhance the wellbeing and happiness of its people.

The biggest study of its kind undertaken by any government was the 2 year U.K. Government's Foresight project on mental capital and wellbeing, the aim of which was “to produce a challenging and long-term vision for optimising mental capital and wellbeing in the United Kingdom in the 21st century—both for the benefit of society and for the individual” (Cooper et al., 2009). Mental capital was defined as the metaphorical “bank account of the mind,” which gets enhanced or depleted throughout the life course (see figure). Mental wellbeing was defined as “a dynamic state that refers to individuals' ability to develop their potential, work productively and creatively, build strong and positive relationships with others and contribute to their community” (Beddington et al., 2008).

Figure. Synthetic View of the Mental Capital Trajectory.

Over 85 international science reviews were commissioned to assess the factors that influence an individual's mental capital and wellbeing throughout life, from early childhood to school years to working life to old age. There were numerous findings in this report, which were costed and developed as potential government policy and/or interventions. An example of some of the findings were: (a) if society does not catch learning difficulties in children early enough, there will be increased personal and economic costs downstream, leading to depleted mental wellbeing in terms of increased antisocial behavior as well as significant health costs; (b) if society does not identify the common mental disorders (CMDs) of anxiety, depression, and stress early enough, and provide appropriate treatment and support, society won't be able to tackle the 1 in 4–6 people suffering from depression and other CMDs; (c) with the workplace being more insecure, people working longer hours, and being more overloaded, occupational stress in many countries is now the leading cause of sickness absence and presenteeism, which has implications for the viability of businesses and their productivity; and, finally, (d) with the doubling of over-65-year-olds and the tripling of over-80-year-olds over the next 30 years, society needs to deal with the consequences of dementia now with preventative strategies, better early diagnosis, and more successful and evidence-based treatment regimes. The Foresight project developed many recommendations to enhance mental capital and wellbeing not only in the United Kingdom but also for other countries (Cooper et al., 2009), and its legacy has provided a roadmap for how other countries should think about this in the future, in terms of both policies and interventions for wellbeing.

The Volumes in the Series

Each volume in the series has a senior editor who is a leading international scholar in a particular field, following the life-course model described by the Foresight program. We start with Wellbeing in children and families and progress to Wellbeing and the environment, Work and wellbeing, Wellbeing in later life, The economics of wellbeing, and, finally, Interventions and policies to enhance wellbeing. The contributors to each of these volumes are distinguished international academics who work in the domain covered, reviewing the evidence that can help to develop policies and interventions to enhance wellbeing in that particular context.

In the first volume on children and families we explore four different themes, with a number of chapters under each of these: the development of the early social and cognitive skills that are important in child wellbeing, parenting and children's development, school and child care-settings that impact child and family wellbeing, and stress and family and child wellbeing.

The second volume is on wellbeing and the environment. This comprises sections, with chapters in each, on wellbeing and the neighborhood, wellbeing and buildings, wellbeing and green spaces, crime and the urban environment (and the implications for wellbeing), and wellbeing and the environmental implications for design.

The third volume highlights the issues of work and wellbeing. A range of topics is covered here: the impact of job demands, the role of workplace control, the organizational characteristics of “happy organizations,” leadership behaviors that influence employee wellbeing, the sustainable workforce, the “working wounded” (including stigma and return to work), organizational coping strategies and wellbeing, and many more.

The fourth volume highlights wellbeing in later life. Topics covered include the changing demographic context of aging, biological determinants and malleability of aging, psychological aspects of wellbeing in later life, nutrition and lifelong wellbeing, physical exercise and aging, combating isolation through technology in older people, the threat to wellbeing from cognitive decline, and maintaining wellbeing through the end of life, among others.

The fifth volume explores the economics of wellbeing, with chapters on income and wellbeing, alternative measures of national wellbeing, the impact of the great recession on economic wellbeing, whether recessions are good for one's health, investing in the wellbeing of children, investing in wellbeing in the workplace, promoting health and wellbeing of older people and protecting population mental health, wellbeing during an economic crisis, and many others.

Finally, the sixth volume highlights interventions and policies that can enhance wellbeing throughout the life course. There are three sections, with chapters on the state of wellbeing science, individual/group interventions on childhood and adolescence, promoting mental health and wellbeing in schools, mindfulness training for children and adolescents, interventions in working years and post retirement, mental health promotion in the workplace, intergenerational interventions to enhance wellbeing among retired people, interventions to create positive organizations and communities with wellbeing as a business priority, the power of philanthropy and volunteering, and creating community connections. Finally, policies are discussed, such as mental health and wellbeing at the top of the global agenda, how subjective wellbeing can influence policy, media and the public's mental health, and promoting wellbeing through new technology.

These volumes contain the leading-edge research, practice, and policies to help government, businesses, local authorities, and global institutions consider how we can action some of what Bobby Kennedy suggested were an important set of outcomes for a successful society. Our institutions need to change, and we as individuals need to do so as well, if we are to achieve personal wellbeing, or as Abraham Lincoln wrote during the American Civil War, “it is not the years in your life which are important, but the life in your years.” Winston Churchill reflected on this as well, when he wrote in an essay on how he dealt with the excessive pressures of life and found solace: “many remedies are suggested for the avoidance of worry and mental overstrain by persons who, over prolonged periods, have to bear exceptional responsibilities and discharge duties upon a very large scale. Some advise exercise, and others, repose. Some counsel travel, and others, retreat…no doubt all of these may play their part according to individual temperament. But the element which is constant and common in all of them is Change…a man can wear out a particular part of his mind by continually using it and tiring it, just in the same way as he can wear out the elbows of his coats…but the tired parts of the mind can be rested and strengthened, not merely by rest, but by using other parts…it is only when new cells are called into activity, when new stars become the lords of the ascendant, that relief, repose, refreshment are afforded.”

I hope that these volumes will provide you with the science, practice, and tools to enhance the mental wellbeing of people in your own work.

References

Antoniou, A., & Cooper, C. L. (Eds.) (2013). The psychology of the recession on the workplace. Cheltenham: Edward Elgar Publishing.

Beddington, J., Cooper, C. L., Field, J., Goswami, U., Huppert, F., Jenkins, R., …Thomas, S. (2008). The mental wealth of nations. Nature, 455(23), 1057–1060.

Cooper, C. L., Field, J., Goswami, U., Jenkins, R., & Sahakian, B. (Eds.) (2009). Mental capital and wellbeing. Oxford: Wiley Blackwell.

Cooper, C. L., & Robertson, I. (Eds.) (2013). Management and happiness. Cheltenham: Edward Elgar Publishing.

German Federal Health Monitoring (2007). Trends in causes of early retirement. http://www.gber.bund.de.

McDaid, D., Knapp, M., Medeiros, H., & MHEEN Group (2008). Employment and mental health. Brussels: European Commission.

Sobocki, P., Jonsson, B., Angst, J., & Rehnberg, C. (2006). Cost of depression in Europe. Journal of Mental Health Policy and Economics, 9(2), 87–98.

1

Introduction

David McDaid

London School of Economics and Political Science, U.K.

Cary L. Cooper

Lancaster University, U.K.

This volume reflects on different perspectives on the economic aspects of wellbeing. Debates and discussions on how we both measure the progress of society and understand what we as human beings value the most in our lives are nothing new. We have pondered these questions since the very dawn of time, but with comparatively little discussion of the interaction between economics and wellbeing until the latter half of the twentieth century.

The approach to economics set out by the Scottish philosopher and economist Adam Smith in The wealth of nations set the tone for much of the discourse on economics over the next two centuries (Smith, 1776/1977). Progress in society would be best achieved through economic growth brought about by ever more efficient production processes, with free and open markets governing the supply and demand for goods and services. The population would maximize their satisfaction and enjoyment of life in such a society. Dissenting views using alternative ways of organizing the means of production and distributing resources, most notably those based on of some of the ideas first set out in Das Kapital (Marx, 1867), were often seen to be failed experiments that caused stagnant levels of economic growth and were mainly used by authoritarian regimes, which entailed the restriction of many individual freedoms.

As Laura Stoll illustrates in her chapter looking at the history of wellbeing research from the time of Socrates, Plato, and Aristotle to the present day, although economists such as Francis Edgeworth expressed an interest in trying to develop machines to measure levels of happiness or other forms of subjective wellbeing (Edgeworth, 1881), this line of inquiry was condemned by neoclassical economists and not pursued in mainstream economics for many years. Doubting that income and happiness were close correlates was deemed to constitute an important challenge to traditional economics (Stutzer & Frey, 2012).

The interest of economists in wellbeing research only really reemerged in the 1970s; Stoll highlights comments made by then U.S. presidential candidate Robert Kennedy in 1968 as a catalyst, questioning the value of conventional measurement of economic output through gross national product or gross domestic product (GDP) as satisfactory measures of “everything that makes life worthwhile.” Kennedy questioned the merits of all economic growth, recognizing that growth could be achieved through negative actions such as pollution and other destruction of the natural environment or engagement in unhealthy behaviors such as smoking.

Kennedy himself was probably influenced by the economist J. K. Galbraith, who had acted as an advisor to his brother President John F. Kennedy. Galbraith was well known for his book The affluent society, which a decade earlier had also questioned the value of GDP because of its failure to look at other aspects of personal and societal wellbeing (Galbraith, 1958). Another economist to question the status quo in the early 1970s, Ernst F. Schumacher, developed a set of principles that he termed “Buddhist Economics,” in which he challenged the conventional wisdom of the pursuit of economic growth, again questioning the impact of growth and its importance to our wellbeing in his seminal work Small is beautiful: A study of economics as if people mattered (Schumacher, 1973).

Most famously, Richard Easterlin was able to make use of social indicator research data in the United States to observe that, despite rising GDP per capita, average happiness in the United States rose through the late 1950s and then fell for the following 20 years, returning to near its 1946 level by 1970 (Easterlin, 1974). This so-called ‘Easterlin Paradox’ has been at the root of much subsequent work in the economic literature on what is as often referred to as the economics of happiness or the economics of wellbeing (Layard, 2005).

Today, the focus in economics is still very much on measurement issues: just what exactly constitutes wellbeing and do we need to go beyond conventional economic measures that use GDP as a primary indicator of social progress as well as economic performance? In 2008 the French government under President Sarkozy asked Joseph Stiglitz (President of the Commission), Amartya Sen (Advisor) and Jean Paul Fitoussi (Coordinator) to establish an international Commission on the Measurement of Economic Performance and Social Progress (Stiglitz, Sen, & Fitoussi, 2010). It recognized wellbeing to be multidimensional, including issues of income and wealth, the level of insecurity in our lives, including in our economic and health status, the strength of social networks, political accountability and democracy, quality of education, employment status and the environment in which we all live.

In the United Kingdom, following a request from Prime Minister David Cameron (Cameron, 2010), the Office of National Statistics embarked on a program to “develop and publish an accepted and trusted set of national statistics that helps people to understand and monitor national wellbeing” (Beaumont, 2012). The first set of data looking at aspects of wellbeing in the UK was published in 2012, with work continuing to further develop indicators (Self, Thomas, & Randall, 2012). This includes traditional economic indicators, supplemented by many of the same broad indicators of wellbeing suggested in the Stiglitz Commission's report.

Much of this volume is thus concerned with the issue of the measurement of wellbeing. Brendan Kennelly in his chapter reviews the fundamental relationship between income and subjective wellbeing, looking at some of the more serious methodological issues in the latter's measurement. He suggests that there have been some significant flaws in the measurement of subjective wellbeing over time that challenge the validity of responses to population surveys. As he notes, 43% of people in a poll in the United States in 1970 described themselves as very happy, the highest possible response available on the survey. But what could they then say the following year, or 5 years later, if they were asked again about their happiness and regarded themselves as even happier?

He also notes that people in higher income countries generally evaluate their lives in a more positive way than people in poorer countries, yet that relationship does not hold for measures of experienced wellbeing. He is in agreement with American economists Deaton and Stone who argue that a measure of hedonic wellbeing that shows that the average European is worse off than the average person from Mozambique, Sudan, or Rwanda is basically meaningless (Deaton & Stone, 2013). He concludes that the balance of recent evidence suggests that, on average, more income is better for individuals and that great caution should be exercised before income measures are replaced or even complemented by measures of subjective wellbeing for policy purposes.

Lars Osberg and Andrew Sharpe describe their Index of Economic Wellbeing and how it can be used to look at cross-country changes in wellbeing following the onset of the global economic crisis in 2008. Their measure of wellbeing focuses on economic dimensions of wellbeing and does not look at more subjective issues, or what they call quality of life issues. They make the point that “there is more to economic wellbeing than GDP per capita, and it is useful to have better measures of the economic wellbeing of society because better measurement may help guide better decisions” (Osberg & Sharpe, 2005).

Their measure considers issues of income, but also issues to do with the distribution of income in society, accumulated stocks of wealth after taking account of the negative impacts of wealth generation to the environment, and economic security, including financial risk due to poor health. They find that the global recession of 2008 had very different impacts in different countries and that economic security for populations plays a key role in protecting them from the greatest negative impacts on their wellbeing. This, potentially, has important policy implications. They identify Finland and Norway as two nations that do well in insulating their citizens against the hazards of the business cycle, for any given size of business cycle shock.

Arthur Grimes and colleagues compile and compare a range of alternative measures of wellbeing including: material measures (e.g., GDP per capita), surveyed measures (e.g., life satisfaction) and composite measures (e.g., on ecological sustainability and development) covering a range of countries. They argue that revealed preference indicators such as migration choices—where the choices are made so as to improve life outcomes now and into the future—are also objective indicators of wellbeing. They then test the predictive power of wellbeing measures against net migration patterns over a 50-year timespan. They conclude that material wellbeing such as GDP, while being an important predictor of migration, is an insufficient index for measuring aggregate wellbeing for potential migrants. A broader measure of life satisfaction must also be included in the definition of aggregate wellbeing for these individuals.

An important policy implication of their empirical analysis is that increases in income may sometimes come at the cost of decreases in other aspects of life satisfaction. This means that economic studies that look at the case for different policy actions need to include a monetary valuation of life satisfaction in their calculations for cost–benefit analyses and not focus solely on material issues. While income does improve wellbeing, their analysis indicates that it should not be the sole basis for assessing the merits of alternative public policies.

Making the Economic Case for Investing in Wellbeing

Thinking further about policy implications, much of the current research on economics and wellbeing has focused on its measurement rather than on how we can use this information to change and improve society. It is not enough to know what factors contribute to wellbeing, we then need to carefully evaluate the cost-effectiveness of actions to promote better wellbeing in society. This economic case for investing in measures to improve wellbeing forms a major component of the volume. Different actions across the life course are considered.

Much of this case for action looks at issues affecting mental wellbeing, which Richard Layard in his chapter contends is the biggest single influence on life satisfaction, with mental health status 8 years earlier a more powerful explanatory factor than current income. Layard demonstrates that our state of mental health also affects earnings and educational success, but, most strikingly, affects employment and physical health. He notes that in high-income countries mental health problems are the main illness of working age—amounting to 40% of all illness under 65.

Cost-effective interventions to treat mental health problems do exist, but it remains the case, even in high-income countries, that only between a quarter and a third of all people who could benefit from mental health services actually receive treatments (Demyttenaere et al., 2004). Layard argues that psychological therapies such as cognitive behavioral therapy would, if more widely available, pay for themselves in savings on benefits and lost taxes.

It has been argued that actions to promote wellbeing in the early years of life will generate the greatest economic returns on investment (Heckman, 2006). In Chapter 8, McDaid and colleagues look in detail at the economic arguments for investing in measures to promote and protect the wellbeing of young people. The strength of the economic case in this area has benefited greatly from the availability of cohort studies that have followed groups of children over many decades. These studies consistently indicate that there can be many adverse health, social, and economic consequences in adulthood of poor wellbeing in childhood. Highly cost-effective actions not only to protect psychological wellbeing, but also to address overweight and obesity and reduce risks from alcohol, smoking, and sexual behavior, were highlighted. In addition, there is compelling evidence, largely from a U.S. context, suggesting that investing in preschool educational interventions can generate positive returns on investment by the time that children reach adulthood (Nores & Barnett, 2010).

Another key area where there is a good economic case for promoting wellbeing is in the workplace. Effective prevention of excess psychosocial stress, as well as promotion of mental wellbeing and investment in return to work activities can all contribute to better outcomes for business. Not only can rates of poor functioning at work, as well as absenteeism and withdrawal from work, be reduced, but a healthy workplace environment can foster creativity and innovation (Robertson & Cooper, 2011; Wang & Samson, 2009). McDaid and Park indicate in Chapter 9 of this volume that not only is there a business case for workplace health promotion, but that there are other additional benefits including reduced use of health-care services and less need to claim long-term disability benefits as a result of work-related mental health problems. Healthy workplaces should not be the preserve of large companies and major public sector organizations; but financial and regulatory incentives may be needed to stimulate investment in workplace health promotion in small enterprises, particularly in contexts where health-care costs are not paid for by employers.

Turning to the wellbeing of older people, many societies do not put enough value on the wisdom and benefits of age, instead having very negative conceptions of aging. A not often reported statistic is that, even beyond official retirement age (in countries where this concept still exists), older people make a positive net economic contribution to the economy, even when their higher rates of disability and health problems are taken into account.

Promoting wellbeing is integral to a healthy aging process and cost-effective measures to tackle risk factors to wellbeing such as social and geographical isolation, bereavement, poor lifestyle behaviors and loss of role are identified in the chapter by Park and colleagues. The importance of prioritizing actions to promote the health of older people will become ever more acute given changing population demographics in many high-income countries and a growing recognition of the importance of protecting the health of older workers, as well as the countless millions of older people who are providing care and support not only for spouses but also for other groups such as their grandchildren. The cost to any policy maker of having to substitute professional carers for informal family carers should also be a powerful incentive for investing in measures to protect wellbeing at older ages.

We have already highlighted how Osberg and Sharpe in this volume have looked at impacts of the current economic downturn on wellbeing in many nations. We can also learn much at individual country level about the impacts on health and wellbeing behaviors in times of austerity and uncertainty. Perhaps no other country was as affected by the 2008 economic crisis as Iceland. Tinna Laufey Ásgeirsdóttir and colleagues were able to use longitudinal survey data that include pre- and post-reports from the same individuals on a range of health-compromising and health-promoting behaviors. They found that the crisis led to significant reductions in some poor behaviors, including smoking and drinking alcohol and sugary drinks, but also a decrease in the consumption of fruit and vegetables. Because of the small size of the population, as well as its concentration around the capital city Reykjavik, it was possible to control for many confounding factors in this analysis, helping to better identify factors that contributed to health behavior change. Reduction in disposable income and dramatic increases in the price of some goods were found to be key variables.

Having a better understanding of how economic shocks, whether boom or bust, impact on health and wellbeing is important to making contingency plans for any future adverse events. McDaid and Wahlbeck explore some of the potential economic consequences of these economic shocks and look at what is known about the effectiveness and cost of actions to alleviate some of the potential risk factors to mental health and wellbeing. A better understanding of local context, as in the Icelandic case, is critical. The magnitude of adverse events and the populations most affected can vary considerably. The chapter stresses that the promotion and protection of mental wellbeing cannot be achieved by the health sector alone. The determinants of mental wellbeing often lie outside of the remits of the health system and all sectors of society have to be involved in its promotion and protection.

We can see from contributions here that research on economics and wellbeing has moved on considerably in the last quarter millennium and there is nothing to suggest that interest is going to wane any time in the near future. Traditional economic measures of growth, while far from being defunct, need to be supplemented with other ways of measuring and putting an economic value on the different dimensions of wellbeing. Care must however be taken in the development of these measures. Policy makers also need to carefully consider how they will best make use of new approaches to wellbeing measurement so as to better evaluate what works best to promote wellbeing, at what cost, and in what context.

References

Beaumont, J. (2012). Measuring national wellbeing: A discussion paper on domains and measures. London: Office for National Statistics.

Cameron, D. (2010). Speech on wellbeing. London: Cabinet Office. https://www.gov.uk/government/speeches/pm-speech-on-wellbeing.

Deaton, A., & Stone, A. A. (2013). Two happiness puzzles. American Economic Review, 103(3), 591–597.

Demyttenaere, K., Bruffaerts, R., Posada-Villa, J., Gasquet, I., Kovess, V., Lepine, J. C.,…Chatterji, S. (2004). Prevalence, severity, and unmet need for treatment of mental disorders in the World Health Organization World Mental Health Surveys. Journal of the American Medical Association, 291(21), 2581–2590.

Easterlin, R. (1974). Does economic growth improve the human lot? Some empirical evidence. In P A. David & M. W. Reder (Eds.), Nations and households in economic growth: Essays in honor of Moses Abramovitz (pp. 89–125). New York: Academic Press.

Edgeworth, F. (1881). Mathematical psychics: An essay on the application of mathematics to the moral sciences. New York: Augustus M. Kelly.

Galbraith, J. K. (1958). The affluent society. New York: New American Library.

Heckman, J. (2006). The economics of investing in children. Policy Briefing No 1. Dublin: UCD Geary Institute.

Layard, R. (2005). Happiness: Lessons from a new science. London: Penguin Books.

Marx, K. (1867). Das Kapital. Kritik der politischen Ökonomie. Hamburg: Verlag von Otto Meissner.

Nores, M., & Barnett, W. S. (2010). Benefits of early childhood interventions across the world: (Under)Investing in the very young. Economics of Education Review, 29(2), 271–282.

Osberg, L., & Sharpe, A. (2005). How should we measure the “economic” aspects of well-being. Review of Income and Wealth, 51(2), 311–336.

Robertson, I., & Cooper, C. (2011). Wellbeing: Productivity and happiness at work. Basingstoke: Palgrave Macmillan.

Schumacher, E. F. (1973). Small is beautiful: A study of economics as if people mattered. London: Blond & Briggs.

Self, A., Thomas, J. & Randall, C. (2012). Measuring national well-being: Life in the UK, 2012. London: Office for National Statistics.

Smith, A. (1776/1977). An inquiry into the nature and causes of the wealth of nations. Chicago: University of Chicago Press.

Stiglitz, J., Sen, A., & Fitoussi, D.-P. (2010). Mismeasuring our lives: Why GDP doesn't add up. The report by the Commission on the Measurement of Economic Performance and Social Progress. New York: The New Press.

Stutzer, A., & Frey. B. (2012). Recent developments in the economics of happiness: A selective overview (IZA Discussion Paper no. 7078). Bonn: IZA.

Wang, H., & Samson, K. (2009). Wellness and productivity management: A new approach to increasing performance. Philadelphia: Right Management.

Part 1

Perspectives on the Economics of Wellbeing

2

A Short History of Wellbeing Research

Laura Stoll

New Economics Foundation, U.K.

Introduction

“Research” into what constitutes “the good life” began with the origins of philosophy itself. Its foundations lie in Ancient Greece: ideas that began there have shaped the way in which scientists and policy makers still think about wellbeing. After a period characterized by the rise of religious thinking about wellbeing, the Enlightenment signaled a change in the way that wellbeing was conceptualized: it was no longer based in faith and tradition, and could be treated as a science, much like physics or chemistry. This was followed by a growth of interest in wellbeing from sociologists, political philosophers, and psychologists. More recently, over the past 40 years or so and alongside the maturation of wellbeing psychology, there has been a rise in wellbeing as a field of study within economics, tightly linked to the development of its measurement in the second half of the twentieth century.

Ancient Greece

Any introduction to the history of wellbeing research must begin in Ancient Greece, where philosophers documented their theories on what constituted “wellbeing” or “the good life” and how it was to be obtained. These philosophies still form the basis of much of the subjective wellbeing research today (Haybron, 2008), and their different conceptualizations of wellbeing as hedonism, eudaimonia, and stoicism still guide much of the thinking about the different kinds of subjective wellbeing measures that scientists and policy makers are currently using.

Greece was rich, with an extensive trade network that had expanded across the Mediterranean and several colonies. The first monetary trading system was in existence and in Athens, a burgeoning metropolis, democracy had arrived. Self-government was an incredibly important and very radical departure from the way societies had been ruled up to this point (and also for quite a lot of them after) (Raaflaub, Ober, & Wallace, 2008). Suddenly, the men of Greece had moderate democratic control over important aspects of their lives. This opened up the debate about how one could control one's life to live well and flourish (McMahon, 2006).1

Socrates (470–399 b.c.e.)2 was the first philosopher to consider in detail the necessary conditions for happiness. Although there are no extant texts written by Socrates himself, his thoughts about wellbeing are captured in the writings of Plato, his most famous student and one of his most loyal proponents. In Plato's Symposium, Socrates describes happiness as what the gods possess (Griffith, 1989). He says that happiness is not found through hedonism—the pursuit of pleasure—it is not found in good fortune, power, riches, fame, or even health or familial love. In place of these things, Socrates preaches philosophy. His recipe for living well is through lifelong learning: beginning in youth, men learn not to desire physical beauty but to put a higher value on beauty of the mind. Through this process they learn gradually to desire wisdom and to become philosophers. Plato believed that through this process of learning self-control, humans could acquire wellbeing (Griffith, 1989).

Plato's most famous student, Aristotle, is also a key figure in the history of wellbeing. Aristotle's complex moral philosophy cannot be summarized easily, but one of the concepts central to the current conceptualization of wellbeing is that of eudaimonia. Aristotle proposed that the aim of life is eudaimonia—sometimes translated as happiness—but, in Aristotle's words, is “pretty well defined as a sort of well-living and well-acting.” Well-living and well-acting involve satisfactory performance of those things that are particularly characteristic of us as human beings. Happiness is therefore excellent performance of the tasks that are typical of a man:

Just as a good lyre-player is someone who performs well at the tasks which lyre-players perform professionally or qua [the characteristics of] lyre-players, so a good man is someone who performs well at the tasks which men perform typically or qua men.

Barnes (2004), p. xxvi

The question thus becomes what are these things that are particularly characteristic or qua of us as humans? Aristotle's answer is that man is a rational animal and, accordingly, the most characteristic human activity is contemplation, by which Aristotle means a quasi-aesthetic appreciation of knowledge and truth. However, only a god-like few can achieve this for much of their life, and therefore the exercise of practical rationality, following reason in day-to-day life, should be the aim of most people. This requires us to foster and exercise areté, normally translated as virtue but perhaps more accurately as good character or excellence, and including such characteristics as justice, courage, temperance, and wittiness (Barnes, 2004). This often involves ensuring that extreme forms of behavior are avoided and being careful to judge the right way of behaving. It is the excellent performance itself that counts for those who cannot achieve a life of contemplation.

This performance lasts a lifetime and the resulting eudaimonia is not a momentary state but something that characterizes an entire life. Indeed, one can only determine whether people are happy after their lives are over. Accordingly, Aristotle prescribes a lifelong training for acquiring virtue.