Introductory description

The goal of this module is to broaden students’ understanding of what factors determine individual’s subjective experiences, and to learn how this knowledge can be applied in business, management and policy settings.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Topics include: different measurements of wellbeing; wellbeing and economic growth; the determinants of wellbeing; job satisfaction and its determinants; how to use wellbeing in cost-benefit analysis; hedonic adaptation and resilience; social comparisons across different domains of life; wellbeing over the life-course; affective forecasting; wellbeing as predictors of future behaviours; wellbeing and public policy.

Learning outcomes

By the end of the module, students should be able to:

• Articulate and apply the key concepts in the economics of wellbeing.
• Demonstrate comprehensive understanding of the importance of wellbeing as one of the key policy targets, how it has been developed, and gain insights into how wellbeing is measured in the field.
• Demonstrate knowledge and understanding of the management and development of people within organisations through a wellbeing lens
• Demonstrate thorough understanding of how wellbeing is typically measured, how happiness is relative and adaptable, how people are typically very bad at predicting their emotional reactions in the future, and how to apply these empirical findings in practically relevant business and government contexts.
• Apply critical thinking, creativity, imagination and decision-making skills in coming up with innovative public policies or business strategies that have individual's wellbeing in mind.
• Critically discuss why people in business and policy makers should care about wellbeing as an outcome, and offer new and cost-effective solutions to the current practices

Indicative reading list

The primary readings for the module include:

Clark, A. E. (2018). Four decades of the economics of happiness: Where next?. Review of Income and Wealth, 64(2), 245-269.
Dolan, P., Peasgood, T., & White, M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of Economic Psychology, 29(1), 94-122.
Clark, A. E., Frijters, P., & Shields, M. A. (2008). Relative income, happiness, and utility: An explanation for the Easterlin paradox and other puzzles. Journal of Economic Literature, 46(1), 95-144.
Artz, B. M., Goodall, A. H., & Oswald, A. J. (2017). Boss competence and worker well-being. IlR Review, 70(2), 419-450.
Card, D., Mas, A., Moretti, E., & Saez, E. (2012). Inequality at work: The effect of peer salaries on job satisfaction. American Economic Review, 102(6), 2981-3003.
Clark, A. E. (2015). What makes a good job? Job quality and job satisfaction. IZA World of Labor.
Clark, A. E., Diener, E., Georgellis, Y., & Lucas, R. E. (2008). Lags and leads in life satisfaction: A test of the baseline hypothesis. Economic Journal, 118(529), F222-F243.
Edmans, A. (2012). The link between job satisfaction and firm value, with implications for corporate social responsibility. Academy of Management Perspectives, 26(4), 1-19.
Giuntella, O., McManus, S., Mujcic, R., Oswald, A.J., Powdthavee, N. and Tohamy, A. (2023) The Midlife Crisis. Economica, 90: 65-110.
Graham, C., Laffan, K., & Pinto, S. (2018). Well-being in metrics and policy. Science, 362(6412), 287-288.
Kaiser, C., & Oswald, A. J. (2022). The scientific value of numerical measures of human feelings. Proceedings of the National Academy of Sciences, 119(42), e2210412119.
Luttmer, E. F. (2005). Neighbors as negatives: Relative earnings and well-being. Quarterly Journal of Economics, 120(3), 963-1002.
Mujcic, R., & J. Oswald, A. (2016). Evolution of well-being and happiness after increases in consumption of fruit and vegetables. American Journal of Public Health, 106(8), 1504-1510.
Oswald, A. J., Proto, E., & Sgroi, D. (2015). Happiness and productivity. Journal of Labor Economics, 33(4), 789-822.
Perez-Truglia, R. (2020). The effects of income transparency on well-being: Evidence from a natural experiment. American Economic Review, 110(4), 1019-1054.
Powdthavee, N., 2008. Putting a price tag on friends, relatives, and neighbours: Using surveys of life satisfaction to value social relationships. Journal of Socio-Economics, 37(4), pp.1459-1480.
Wilson, T. Gilbert, D. (2003) Affective forecasting. Advances in Experimental Social Psychology, 35, p345-411.

Research element

Evaluate and interpret empirical estimates typically reported in the economics of wellbeing literature, scanning and organising the data, synthesising and analysing to extract meaning.

Subject specific skills

Evaluate and interpret empirical estimates typically reported in the economics of wellbeing literature, scanning and organising the data, synthesising and analysing to extract meaning.
Apply theories in the economics of wellbeing to their own experiences.
Critically evaluate existing business and government practices which either support or ignore people's wellbeing as their principal outcomes.

Transferable skills

Written communication skills.
Demonstrate high personal effectiveness.
Demonstrate leadership and performance management skills.