Are They Frigid to the Economic Development? Reconsideration of the Economic Effect on Subjective Well-being in Japan

The question about the contribution of economic growth to subjective well-being has caused long-standing debate in the literature on subjective well-being, and Japan is often mentioned as a typical case of no contribution. With a careful examination of the survey text, nevertheless, this study provides a completely opposite result. In other words, the average score of subjective well-being is significantly associated with the level of national income per capita. The study also finds that not only the level of national income per capita but also its growth rate is a significant explanatory variable. However, it is also suggested that a structural subsidence of subjective well-being occurred in the late 1990s, when many Japanese people lost confidence in their traditional economic system.