The relationship between happiness and health: evidence from Italy

We test the relationship between happiness and self-rated health in Italy. The analysis relies on a unique dataset collected through the administration of a questionnaire to a representative sample (n = 817) of the population of the Italian Province of Trento in March 2011. Based on probit regressions, instrumental variables estimates and structural equations modelling, we find that happiness is strongly correlated with perceived good health, after controlling for a number of relevant socio-economic phenomena. Health inequalities based on income, work status and education are relatively contained in respect to the rest of Italy. As expected, this scales down the role of social capital.