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Well-being in Germany: What explains the regional variation?

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  • Vatter, Johannes

Abstract

This paper examines regional differences in subjective well-being (SWB) in Germany. Inferential statistics indicate a diminishing but still significant gap between East andWest Germany, but also differing levels of SWB within both parts of Germany. The observed regional pattern of life satisfaction reflects macroeconomic fundamentals, where labour market conditions play a dominant role. Differing levels of GDP and economic growth have contributed rather indirectly to well-being such that the period since the reunification can be considered as a period of joyless growth. Moreover, the effects of unemployment and income differ in size between regions in such a way that one can assume increasing marginal disutility of unemployment. In total, approximately half of 'satisfaction gap' between East and West Germany can be attributed to differing macroeconomic conditions. In contrast, the comparably high levels of life satisfaction in Northern Germany are driven mostly by couples and go along with significantly higher fertility rates. Overall, I conclude that comparisons of SWB within a single country provide valid information.

Suggested Citation

  • Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers 50, University of Freiburg, Research Center for Generational Contracts (FZG).
  • Handle: RePEc:zbw:fzgdps:50
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    2. Martina Grunow, 2014. "Reference-Dependent Effects of Unemployment on Mental Well-Being," Discussion Paper Series 323, Universitaet Augsburg, Institute for Economics.
    3. Homann, Malte & Jensen, Uwe, 2013. "Does better education cause higher income?," HWWI Research Papers 145, Hamburg Institute of International Economics (HWWI).
    4. Ralf Werner Koßmann, 2016. "Effectiveness of Social Capital in the Job Search Process," SOEPpapers on Multidisciplinary Panel Data Research 823, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Philip S. Morrison, 2021. "Whose Happiness in Which Cities? A Quantile Approach," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    6. Sebastian Himmler & Jannis Stöckel & Job van Exel & Werner Brouwer, 2020. "The Value of Health - Empirical Issues when Estimating the Monetary Value of a QALY Based on Well-Being," SOEPpapers on Multidisciplinary Panel Data Research 1101, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    subjective well-being; regional disparities; unemployment; economic growth; fertility rate;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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