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Easterlin Paradox

The Easterlin Paradox refers to a phenomenon identified by economist Richard Easterlin in the 1970s, in which increases in a country's per capita income do not necessarily lead to increased happiness or life satisfaction among its citizens. Easterlin observed that while people in countries with higher incomes tend to report higher levels of happiness, within a given country, there is often little direct relationship between income and happiness.

This paradox has been the subject of much debate among economists and researchers, and there are a number of competing theories to explain it. Some researchers argue that the Easterlin Paradox may be due to the fact that people's happiness depends on their relative income (i.e., how much they make compared to others), while others suggest that other factors, such as social connections and work-life balance, may be more important determinants of happiness.

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