Inaugural lecture Prof M.V. (Milena) Nikolova: The Economics of Happiness

In her inaugural lecture, Professor Milena Nikolova explores the Economics of Happiness, tracing its historical roots and modern relevance while drawing on her research in the field. She notes that happiness has long been central to economic thought, with early economists like Adam Smith and Jeremy Bentham emphasizing its importance to human life. While early economists attempted to measure happiness, the focus of economic research slowly shifted away from this - until its resurgence in recent years under the broader field now called subjective well-being.

Nikolova examines the validity and reliability of subjective well-being data, explores the key factors that influence our well-being, and discusses how these insights can shape public policy.

She distinguishes between two key aspects of subjective well-being: happiness, a short-term emotional state, and life satisfaction, a broader evaluation of one's life. In the short run, income is the most important determinant of life satisfaction but has a limited effect on daily happiness once basic needs are met. While higher income provides security and opportunities, it is positive experiences and social connections that play a much greater role for daily happiness. Furthermore, economic growth does not automatically lead to higher life satisfaction over time. Nikolova explores the reasons behind this. She also examines how inequality, job loss, and institutions influence both happiness and life satisfaction, emphasizing the importance of these insights for policy development and society as a whole.

Looking ahead, Nikolova’s research will focus on two key areas: the meaningfulness of work and the impact of new technologies, such as AI and robotics, on job quality and well-being. She will explore how technological change affects not just the availability of jobs but also the content and purpose of work. Particularly, she will study whether new technologies, despite creating jobs, might lead to work that is less meaningful and engaging. She hopes that her research can contribute to the design of technologies that enhance rather than diminish human well-being.

Furthermore, Nikolova aims to examine how work meaningfulness influences productivity, motivation, and long-term well-being. By gathering new data on workers' experiences across different countries and economic contexts, Nikolova hopes to provide insights into how policymakers and organizations can foster purposeful, fulfilling work, even amid rapid technological advances.

Nikolova concludes her lecture by stressing the importance of using subjective well-being data, alongside traditional metrics like Gross Domestic Product (GDP), to inform public policy. By incorporating the insights from the Economics of Happiness, policymakers can promote prosperity and well-being in an era of rapid technological change.

More information

Inaugural lecture: Prof M.V. (Milena) Nikolova

• Title: The Economics of Happiness
• Chair: Economics of Well-being

• Faculty: Economics and Business

Registration please at the latest 4 October via the registration form

Livestream on 11 October, see: www.rug.nl/digitale-oratie