Abstract: It is widely recognized that happiness is the ultimate purpose of all human activities. Does education as an important activity of human society have any effect on happiness? If it does, what is the strength, speed, breadth of education’s effect on happiness? Addressing these questions at both micro- and macro-scales require a thorough understanding of this complex issue. At a micro-level, how can we determine the happiness effect of education as specific as a particular behavior of an individual’s education (educational activities, investment in education, etc.): Is there any effect? If there is, is it negative, positive, or both? If both negative and positive effects exist, which is stronger and grows faster - the negative or positive effect? If extended to the macro-perspective of the whole society, the measure of educational effects on happiness will be even more complicated. Through examining the history of the entire social development of mankind, we can learn that education has had positive effect on happiness (more specifically, positive effect is strong and long while negative effect is weak and short). This is what shall be kept in mind in the pursuit of achieving the “China Dream” today.