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Does satisfaction matter? A microeconomic empirical analysis of the effect of social relations on economic welfare

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  • Degli Antoni, Giacomo

Abstract

The paper studies the effect of social relations on individual economic welfare by explicitly considering the qualitative aspect of relations that characterize the social structure of personal contacts. It argues that important information is lost if only the density of the social network is considered. This proposition is tested using microdata representative of the entire Italian population. Two proxies for interpersonal relations at an individual level are considered: the number of voluntary associations joined and the satisfaction gained from relationships with friends. Both seem to have a positive effect on two indices of household economic welfare: a subjective index and an objective one. The subjective index is based on both the subjects' personal assessment of their household general economic situation and financial difficulties in meeting certain expenditures. The objective index is calculated from objective data on the household's economic situation. The empirical results prove robust on considering a variety of control variables and using different econometric methods.

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  • Degli Antoni, Giacomo, 2009. "Does satisfaction matter? A microeconomic empirical analysis of the effect of social relations on economic welfare," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 301-309, March.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:301-309
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    6. Giacomo Degli Antoni, 2009. "Motivations to volunteer and social capital: the role of intrinsic motivations in promoting networks of cooperative relations," Econometica Working Papers wp06, Econometica.
    7. Putra Hilmi Prayitno & Sheerad Sahid & Muhammad Hussin, 2022. "Social Capital and Household Economic Welfare: Do Entrepreneurship, Financial and Digital Literacy Matter?," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    8. Melkman, Eran P. & Benbenishty, Rami, 2018. "Social support networks of care leavers: Mediating between childhood adversity and adult functioning," Children and Youth Services Review, Elsevier, vol. 86(C), pages 176-187.
    9. Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2014. "Online and offline social participation and social poverty traps. Can social networks save human relations?," MPRA Paper 55703, University Library of Munich, Germany.
    10. Fabio Zagonari, 2011. "Which Ethics Will Make us Individually and Socially Happier? A Cross-Culture and Cross-Development Analytical Model," Journal of Happiness Studies, Springer, vol. 12(1), pages 77-103, March.
    11. Sabatini, Fabio, 2011. "Democracy or videocracy? An econometric analysis of the role of television in the Italian political arena," MPRA Paper 31117, University Library of Munich, Germany.
    12. Sabatini Fabio, 2011. "Who trusts Berlusconi? An econometric analysis of the role of television in the political arena," wp.comunite 0075, Department of Communication, University of Teramo.
    13. Fabio Sabatini, 2012. "Who Trusts B erlusconi? An Econometric Analysis of the Role of Television in the Political Arena," Kyklos, Wiley Blackwell, vol. 65(1), pages 111-131, February.

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