Educational philosophers contend that education enhances autonomy and thus happiness, but empirical studies rarely explore the positive influence of education on happiness. Based on the previous finding that being better connected to the outside world makes people happy, this study examines the possibility that how well an individual connects to the world accounts for the positive association between education and happiness. Analyzing survey data from four East Asian countries, we find a common pattern among Japan, Taiwan and South Korea. Although both monetary and non-monetary factors play a role in explaining the relationship between education and higher reports of happiness, monetary factor is relatively unimportant whereas non-monetary factors, such as interpersonal network and degree of cosmopolitanism, account for a significant part of the association between education and happiness. China is exceptional due to its relative importance of personal income in accounting for happiness. In short, individuals who receive more education have more extensive social networks as well as greater involvement with the wider world; these life conditions are positively related with happiness. By enhancing one's ability and propensity to connect with the wider social world, education may improve an individual's subjective well-being.