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Happiness and Welfare State Policy Around the World

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  • O'Connor, Kelsey J.

Abstract

There is continual debate focusing on government's role in determining the well-being of its citizens. Should governments expand the generosity of welfare-state policies or reduce their involvement? This question is especially appropriate in less-developed countries with fewer resources to invest. This paper’s findings show welfarestate policy is positively associated with life satisfaction around the world, and the relation holds in subsamples of developed, transition, and less-developed countries. The relation is of similar magnitude as the relation for GDP pc, and is more significant than the relation for quality of governance. The results are based on cross-sectional regressions including 104 countries over the period 2005–2012. Life satisfaction data are from the Gallup World Poll, and welfare-state policy is measured using public social protection expenditures from the International Labor Organization. Previous empirical studies support a positive life satisfaction welfare-state policy relation, but the samples contained few, if any, less-developed countries.

Suggested Citation

  • O'Connor, Kelsey J., 2017. "Happiness and Welfare State Policy Around the World," Review of Behavioral Economics, now publishers, vol. 4(4), pages 397-420, December.
  • Handle: RePEc:now:jnlrbe:105.00000071
    DOI: 10.1561/105.00000071
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    More about this item

    Keywords

    Subjective Well-Being; Life Satisfaction; Welfare-State Policy; Quality of Governance; Transition Countries; Less-Developed; Countries;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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