---
canonical_url: "https://csls.ca/research/does-money-matter-determining-the-happiness-of-canadians/"
title: "Does Money Matter? Determining the Happiness of Canadians"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-02T13:29:38+00:00"
date_modified: "2026-07-02T13:29:38+00:00"
post_type: "research"
summary: ""
post_tag:
  - "Canada"
  - "Canadian Community Health Survey"
  - "geographical variation"
  - "happiness"
  - "health"
  - "income"
  - "life satisfaction"
  - "sense of belonging"
  - "well-being"
country_focus:
  - "Canada"
province_region:
  - "National"
research_theme:
  - "Economic Well-Being"
featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp"
status: "publish"
---

# Does Money Matter? Determining the Happiness of Canadians

Canonical URL: https://csls.ca/research/does-money-matter-determining-the-happiness-of-canadians/

# Does Money Matter? Determining the Happiness of Canadians

[Download full PDF report](https://csls.ca/pdf/csls2010-09-1.pdf)

Cite this report

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Cite this report as:

Sharpe, Andrew, Ali Ghanghro, Erik Johnson, and Anam Kidwai. 2010. “Does Money Matter? Determining the Happiness of Canadians.” CSLS Research Report 2010-09. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/does-money-matter-determining-the-happiness-of-canadians/

## Authors:

-
Andrew Sharpe
Centre for the Study of Living Standards (CSLS)

-
Ali Ghanghro
Institute for Competitiveness and Prosperity

-
Erik Johnson
Institute for Competitiveness and Prosperity

-
Anam Kidwai
Institute for Competitiveness and Prosperity

## Report 2010-09

November 2010 134 pages

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## Abstract

## Résumé

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This report explains why people living in certain regions or cities in Canada experience higher levels of life satisfaction or happiness. We make use of micro-level data from the Canadian Community Health Survey for 2007 and 2008. After a descriptive analysis of the data on happiness in Canada, the report identifies, through an econometric analysis of both individual and certain variables in a societal context, the factors that are the most statistically and economically significant determinants of individual happiness. We find that household income is a relatively weak determinant of individual happiness. Perceived mental and physical health status as well as stress levels and sense of belonging are better predictors of happiness. We then use these estimates to account for variation in happiness at the provincial, CMA (Census Metropolitan Area), and health region level, given the characteristics of the population in these geographical units. We find that the most important reason for geographical variations in happiness in Canada is differences in the sense of belonging to local communities, which is generally higher in small CMAs, rural areas, and Atlantic Canada.

Ce rapport explique pourquoi les personnes vivant dans certaines régions ou villes du Canada affichent des niveaux de satisfaction à l’égard de la vie ou de bonheur plus élevés. Nous utilisons des microdonnées tirées de l’Enquête sur la santé dans les collectivités canadiennes de 2007 et de 2008. Après une analyse descriptive des données sur le bonheur au Canada, le rapport cerne, au moyen d’une analyse économétrique de variables individuelles et de variables de contexte sociétal, les facteurs qui sont les déterminants les plus significatifs, sur les plans statistique et économique, du bonheur individuel. Nous constatons que le revenu du ménage est un déterminant relativement faible du bonheur individuel. L’état de santé mentale et physique perçu, ainsi que le niveau de stress et le sentiment d’appartenance, sont de meilleurs prédicteurs du bonheur. Nous utilisons ensuite ces estimations pour expliquer les variations du bonheur à l’échelle des provinces, des régions métropolitaines de recensement (RMR) et des régions sociosanitaires, compte tenu des caractéristiques de la population de ces unités géographiques. Nous constatons que la principale raison des variations géographiques du bonheur au Canada réside dans les différences du sentiment d’appartenance aux communautés locales, généralement plus élevé dans les petites RMR, les régions rurales et le Canada atlantique.

[Download full PDF report](https://csls.ca/pdf/csls2010-09-1.pdf)
