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Elevated Uncertainty during the Financial Crisis: Do Effects on Subjective Well-Being Differ across European Countries?

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  • Tonzer Lena

    (Halle Institute for Economic Research, University of Halle-Wittenberg, Kleine Maerkerstraße 8, (Saale)06108, Halle, Germany)

Abstract

This paper focuses on the effect of uncertainty as reflected by financial market variables on subjective well-being. The analysis is based on Eurobarometer surveys, covering 18 countries over the period 2000–2013. Individuals report lower levels of life satisfaction in times of higher uncertainty approximated by stock market volatility. This effect is heterogeneous across respondents: the probability of being unsatisfied is higher for respondents who are older, unemployed, less educated, and live in one of the GIIPS countries of the Euro area. Furthermore, higher uncertainty in combination with a financial crisis increases the probability of reporting low values of life satisfaction.

Suggested Citation

  • Tonzer Lena, 2019. "Elevated Uncertainty during the Financial Crisis: Do Effects on Subjective Well-Being Differ across European Countries?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-15, April.
    • Handle: RePEc:bpj:bejeap:v:19:y:2019:i:2:p:15:n:7
    DOI: 10.1515/bejeap-2018-0099
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    More about this item

    Keywords

    subjective well-being; Eurobarometer; uncertainty; financial crises; Europe;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • G01 - Financial Economics - - General - - - Financial Crises
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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