…And the pursuit of happiness: International migratory flows and countries' subjective well‐being

Abstract

This research considers observed migratory flows as a source of information for the preferences of individuals. Using data on global migration flows from 2005 onwards, the extent to which the structure of the international migration system is consistent with an implicit ranking of countries is examined. Moreover, by assuming that migrants' decision‐making is guided by utility maximization, we interpret the scores of the ranking as a measure of subjective well‐being or happiness. After this, the estimated scores are associated with a set of factors usually considered key drivers of happiness. Empirical results suggest that income is the most relevant predictor of happiness and this relationship is non‐linear.