How Growth Becomes Well‐Being: The Social Foundations of Happiness in Canada

ABSTRACT This study examines the relationship between economic growth (GDP per capita) and subjective well‐being (happiness) in Canada, emphasizing the mediating roles of economic and social factors. Using data from 2012 to 2024 and applying structural equation modeling (SEM), the analysis reveals that the direct association between GDP and happiness is statistically insignificant. Instead, social factors, including education, health, income inequality, work pressure, and leisure, emerge as significant mediators, shaping the indirect pathways between economic growth and happiness. Conversely, economic factors such as income, employment, inflation, and taxes play a limited or inconsistent role in this relationship. The findings suggest that rising GDP alone may not be sufficient to improve subjective well‐being in a high‐income context such as Canada. The analysis further suggests that the well‐being benefits associated with economic growth may be strengthened when accompanied by investments in health, education, work–life balance, and equitable income distribution. Accordingly, policies aimed at reducing work pressure, addressing inequality, and improving access to healthcare and opportunities for leisure may help strengthen the social pathways through which economic growth is associated with subjective well‐being.