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Subjective Well-Being: Estonia in an International Comparison

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  • Anu Randveer

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    (Department of Economics, Tallinn University of Technology)

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    Abstract

    This paper focuses on two issues of subjective well-being: (1) the relative advantage of using either happiness or life satisfaction as an explanatory variable and either (relative) income or financial satisfaction as an independent variable, and (2) the difference in the level and the factors of subjective well-being between the whole sample countries and a typical transition country – Estonia. The analysis is performed using OLS, based on the World Values Study data from 1995-7. The results of the analysis suggest the advantage of using life satisfaction as a proxy for subjective well-being: life satisfaction is better explained by the same variables as happiness. The explanatory power of the Estonian equations is lower compared to equations based on the whole set of countries; however, the size and signs of coefficients are comparable, although with some interesting differences in the effects of, for example, income, education and immigrant status.

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    File URL: http://deepthought.ttu.ee/majandus/tekstid/TUTWPE_07_159.pdf
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    Bibliographic Info

    Paper provided by Tallinn School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 159.

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    Length: 12
    Date of creation: 2007
    Date of revision:
    Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 5-16
    Handle: RePEc:ttu:wpaper:159

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    Related research

    Keywords: happiness; subjective well-being; life satisfaction; financial satisfaction; post-Soviet countries; Estonia;

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    1. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
    2. Bernard M. S. van Praag & P. Frijters & Ada Ferrer-i-Carbonell, 2001. "The Anatomy of Subjective Well-Being," Discussion Papers of DIW Berlin 265, DIW Berlin, German Institute for Economic Research.
    3. DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 2001. "Preferences over inflation and unemployment: Evidence from surveys of happiness," ZEI Working Papers B 03-2001, ZEI - Center for European Integration Studies, University of Bonn.
    4. Ng, Yew-Kwang, 1997. "A Case for Happiness, Cardinalism, and Interpersonal Comparability," Economic Journal, Royal Economic Society, vol. 107(445), pages 1848-58, November.
    5. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
    6. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    7. Korpi, Tomas, 1997. "Is utility related to employment status? Employment, unemployment, labor market policies and subjective well-being among Swedish youth," Labour Economics, Elsevier, vol. 4(2), pages 125-147, June.
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