The relationship between education, income, economic freedom and happiness

Abstract

Education is a factor for economic prosperity and social development in modern society. As well education allows its owner to receive a higher income and gives the opportunity for self-expression, creative fulfilment, as well as moral satisfaction from current activities. The life of educated people is not only longer, but also more interesting and informative. Moreover people with a higher level of education are happier also. In this aspect the purpose of the article is to determine the relationship between the quality of education, the degree of economic freedom, the level of income and the feeling of happiness. This paper presents results of the correlation analysis between indicators of education, income, happiness and economic freedom for 145 countries for 2018. The author of the work calculated Pearson (product-moment) correlation, the Spearman rank correlation, and Kendall’s Tau correlation in the application software Statistica. The analysis showed that Education Index has a strong relationship with Happiness Index, Economic Freedom of the World Index, Index of Economic Freedom and GDP. The analysis showed that education is closely related to the level of income and self-awareness of happiness. Education is also closely related to economic freedom. Also, the results of the study suggest that education not only contributes to an increase in income, but also makes persons happier.