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Subjective Economic Well-Being in Eastern Europe

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Author Info
Bernd Hayo (University of Essen)
Wolfgang Seifert (LDS, Düsseldorf)

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Abstract

This paper analyses subjective economic well-being in several Eastern European countries from 1991 to 1995. Economic well-being explains a significant part of the variation in overall life satisfaction of Eastern Europeans. In an ordered logit model, the determinants of subjective economic well-being are analysed. Some results are very similar to typical findings in happiness regressions, such as a negative but u-shaped age effect, positive influences of education and relative income position, as well as a negative effect of unemployment. Differing results were found with regard to gender and marital status. Finally, comparing indicators of objective and subjective well-being on a macro level indicates that using a standard macro variable for cross-country comparisons in well-being, such as real GDP per capita, may provide misleading results during the early stages of transformation.

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Publisher Info
Paper provided by EconWPA in its series Development and Comp Systems with number 0203001.

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Length: 25 pages
Date of creation: 14 Mar 2002
Date of revision:
Handle: RePEc:wpa:wuwpdc:0203001

Note: Type of Document - ; prepared on IBM PC; pages: 25; figures: included
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Web page: http://129.3.20.41

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Related research
Keywords: Eastern Europe; Economic Well-being; Happiness; Economic Transformation;

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D60 - Microeconomics - - Welfare Economics - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
P2 - Economic Systems - - Socialist Systems and Transition Economies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  3. Bernd Hayo, 2000. "Micro and Macro Determinants of Public Support for Market Reforms in Eastern Europe," Development and Comp Systems 0004002, EconWPA. [Downloadable!]
  4. Bruno S. Frey & Alois Stutzer, 2000. "Maximising Happiness?," German Economic Review, Blackwell Publishing, vol. 1(2), pages 145-167, 05. [Downloadable!] (restricted)
    Other versions:
  5. Fidrmuc, Jan, 2000. "Political support for reforms: Economics of voting in transition countries," European Economic Review, Elsevier, vol. 44(8), pages 1491-1513, August. [Downloadable!] (restricted)
    Other versions:
  6. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March. [Downloadable!] (restricted)
  7. Frank, Robert H, 1997. "The Frame of Reference as a Public Good," Economic Journal, Royal Economic Society, vol. 107(445), pages 1832-47, November. [Downloadable!] (restricted)
  8. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December. [Downloadable!] (restricted)
  9. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. Frey, Bruno S. & Stutzer, Alois, 2000. "Happiness, Economy and Institutions," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  12. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May. [Downloadable!] (restricted)
  13. Kenny, Charles, 1999. "Does Growth Cause Happiness, or Does Happiness Cause Growth?," Kyklos, Blackwell Publishing, vol. 52(1), pages 3-25.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Vani Borooah, 2006. "What Makes People Happy? Some Evidence from Northern Ireland," Journal of Happiness Studies, Springer, vol. 7(4), pages 427-465, November. [Downloadable!] (restricted)
  2. Blanchflower, David G. & Oswald, Andrew J., 2007. "Is Well-being U-Shaped over the Life Cycle?," The Warwick Economics Research Paper Series (TWERPS) 826, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  3. Orsolya Lelkes, 2005. "Knowing what is good for you. Empirical analysis of personal preferences and the “objective good”," Others 0502008, EconWPA. [Downloadable!]
    Other versions:
  4. Castriota Stefano, 2006. "Education and Happiness: a Further Explanation to theEasterlin Paradox?," Departmental Working Papers 246, Tor Vergata University, CEIS. [Downloadable!]
  5. Bernd Hayo, 2004. "Happiness in Eastern Europe," Public Economics 0410002, EconWPA. [Downloadable!]
    Other versions:
  6. Paul Frijters & Tony Beatton, 2008. "The mystery of the U-shaped relationship between happiness and age," NCER Working Paper Series 26, National Centre for Econometric Research. [Downloadable!]
  7. Tine Stanovnik & Miroslav Verbic, 2004. "Perception of Income Satisfaction: An Analysis of Slovenian Households," HEW 0408003, EconWPA. [Downloadable!]
  8. Richard A. Easterlin & Onnicha Sawangfa, 2007. "Happiness and Domain Satisfaction: Theory and Evidence," IZA Discussion Papers 2584, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Fischer, Justina AV, 2009. "Happiness and age cycles – return to start…," MPRA Paper 15249, University Library of Munich, Germany. [Downloadable!]
  10. Andrew E. Clark, 2007. "Born To Be Mild? Cohort Effects Don’t (Fully) Explain Why Well-Being Is U-Shaped in Age," IZA Discussion Papers 3170, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Andrew E. Clark, 2006. "Born to be mild? Cohort effects don't explain why well-being is U-shaped in age," PSE Working Papers 2006-35, PSE (Ecole normale supérieure). [Downloadable!]
  12. Easterlin, Richard A., 2008. "Lost in Transition: Life Satisfaction on the Road to Capitalism," IZA Discussion Papers 3409, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Guglielmo Maria Caporale & Yannis Georgellis & Nicholas Tsitsianis & Ya Ping Yin, 2007. "Income and Happiness across Europe: Do Reference Values Matter?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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