This study examines lay theories and demographic correlates of happiness in Britain, China (Hong Kong) and Japan among comparable groups, 311 young people completed a questionnaire measuring lay theories of happiness (COHQ) and the Oxford Happiness Inventory (OHI). The British participants reported highest levels of happiness. The 36 causes factored into six internally coherent and interpretable factors. Only one of the six factors significantly correlated (r = .21, p < .05 to r = .34, p < .01) with the Oxford Happiness Inventory (OHI) scores. Path analysis, using the OHI as the dependent variable showed that among the lay theory factors, only lay theories about achievement and freedom in life and work was a direct predictor. The role and function of lay theories with respect to happiness are discussed.

Key words: lay theories, east-west comparison, happiness