This paper analyses determinants of happiness among Spanish people. The results are consistent with previous findings in the literature. The divorced and the widowed are much less happy than married people and the same thing happens with the unemployed with respect to the employed. Happiness increases with income (at a decreasing rate) and is positively related with good health. Positive expectations tend to make people happier, as well as optimism and economic progress. With respect to social capital, we find that those who say they trust others, in general, are significantly happier than those with less trust. Similar positive effects are shown with respect to the trust in some institutions. In particular, trust in large firms seems to increase individuals’ happiness substantially. Personal ethics also show some effects. Specifically, those who reject dishonest behaviour, such as tax evasion or bribery, appear to be happier than others.

Key words: happiness, expectation, social capital.
JEL classification: D60, I30.