Can Economic Development Lead to Lower Wellbeing?

The Finding 

When we typically compare a country’s per-capita GDP and the average life satisfaction of its population, we almost always see a positive relationship — that is, a wealthier country generally predicts a happier citizen. But when Rudolf and Bethmann went to analyze these same variables for adolescents, as opposed to the adult population usually sampled for data, they found the opposite to be true. For the nearly 500,000 15-year-olds across 72 middle and high income countries in 2018, greater economic development in their country predicted lower life satisfaction and subjective wellbeing.

What is causing this negative correlation?

In line with our typical understanding of the adults’ data, differences in adult satisfaction can be attributed to country-level differences, like GDP. On the other hand, adolescents tend to be more influenced by their immediate social structures. Such communities can include their families, neighborhoods, and schools. Rudolf and Bethmann suggest the latter may be the main culprit behind the lack of satisfaction in adolescents from wealthy countries.

Indeed, positive correlations have previously been found between the wealth of a country and the school stress experienced by adolescents. In advanced nations, higher intensity learning may demand greater cognitive efforts in exchange for solving a greater number of more difficult problems. Various motivations for academic achievement, such as family pressures or peer competition, have also been shown to increase academic performance but decrease wellbeing. Thus, the expanded educational opportunities of an advanced nation seem to come with an added stress of keeping up with this level of academic accomplishment, ultimately giving rise to a “mental cost” that may just be strong enough to cause the negative correlation seen. 

Rudolf and Bethmann’s data analysis, which uses a mathematical model, supports this hypothesis. Most notably, the authors found that the inclusion of educational variables decrease the impact of per-capita GDP on adolescent wellbeing by more than half. Specifically, a higher score on the Programme for International Student Assessment (PISA), a standardized exam that measures skills in reading, mathematics, and science, predicted lower life satisfaction. Whereas per-capita GDP alone could explain roughly 20% of the variation in adolescent wellbeing, the combined model could explain over 40%. 

What about lower income countries?

While a negative linear correlation appears for the higher income countries, the addition of lower-middle income countries present a different story. Upon the inclusion of countries in the “PISA for Development” program, Rudolf and Bethmann found a relationship more akin to an inverse U shape. This is perhaps unsurprising, as adolescents who must first concern themselves with survival and security needs have lower life satisfaction than those in countries where this is less of a problem. It is not until higher income countries that education intensifies and begins to cause stress significant enough to impact mental health. 

So how do we combat the harms of academic stress in wealthier nations?

Similar to previous research, Rudolf and Bethmann observed a negative correlation between life satisfaction and inter-student competition. However, they also found a positive correlation between satisfaction and collaboration. This suggests that educational policies promoting cooperation between peers may, at least in part, counter the harmful impacts of competition and reduce academic stress while maintaining achievement. 

Many universities have begun to offer tips on how to create a collaborative learning environment. Below are some highlights that are relatively simple to implement in the classroom.

  • Take advantage of collaborative technology. Shared documents allow students to work together simultaneously, while online discussion boards let students respond to one another asynchronously. (Columbia University)

  • Encourage peer editing, which enriches both writer and editor by providing opportunities to communicate and consume critical feedback. (University of Maryland)

  • Use real-world case studies. By grounding the problem in reality, students not only have a greater breadth of literature to research from, but they may feel more connected to the topic at hand. (George Washington University)

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The Social Self’s Impact on Mental Wellbeing