IDEAS home Printed from https://ideas.repec.org/a/spr/jhappi/v22y2021i4d10.1007_s10902-020-00285-x.html
   My bibliography  Save this article

The Role of Income and Social Capital for Europeans’ Well-Being During the 2008 Economic Crisis

Author

Listed:
  • Francesco Sarracino

    (Institut national de la statistique et des études économiques du Grand-Duché du Luxembourg (STATEC)
    LCSR National Research University Higher School of Economics)

  • Marcin Piekałkiewicz

    (University of Siena)

Abstract

We investigate whether the correlation of income and social capital with well-being changes in times of economic crisis. Both subjective well-being and social capital may decline during a crisis, and their correlation can change: if social capital becomes a scarce good, it may correlate more with well-being. Alternatively, people may find that in times of crisis other things matter more for well-being and its association with social capital should decrease. To account for these possibilities, we apply a Blinder–Oaxaca decomposition and regression analysis with interaction effects to European Social Survey data from 2006 to 2012. Our findings indicate that, after accounting for the decline of social capital, its correlation with well-being does not change over time. On the contrary, income becomes only temporarily more important for well-being. We conclude that in times of crisis, when material concerns are urgent, policy makers targeting recovery should account for the policy impacts on social capital.

Suggested Citation

  • Francesco Sarracino & Marcin Piekałkiewicz, 2021. "The Role of Income and Social Capital for Europeans’ Well-Being During the 2008 Economic Crisis," Journal of Happiness Studies, Springer, vol. 22(4), pages 1583-1610, April.
  • Handle: RePEc:spr:jhappi:v:22:y:2021:i:4:d:10.1007_s10902-020-00285-x
    DOI: 10.1007/s10902-020-00285-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10902-020-00285-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10902-020-00285-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2014. "The drivers of happiness inequality: suggestions for promoting social cohesion," Oxford Economic Papers, Oxford University Press, vol. 66(2), pages 419-442.
    2. Heinz Welsch & Jan Kühling, 2016. "How Has The Crisis Of 2008–09 Affected Subjective Well-Being? Evidence From 25 Oecd Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 68(1), pages 34-54, January.
    3. Conchita D’Ambrosio & Joachim Frick, 2007. "Income Satisfaction and Relative Deprivation: An Empirical Link," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(3), pages 497-519, May.
    4. Andrés Rodríguez-Pose & Viola Berlepsch, 2014. "Social Capital and Individual Happiness in Europe," Journal of Happiness Studies, Springer, vol. 15(2), pages 357-386, April.
    5. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    6. Angelo Antoci & Fabio Sabatini & Mauro Sodini, 2013. "Economic Growth, Technological Progress and Social Capital: The Inverted U Hypothesis," Metroeconomica, Wiley Blackwell, vol. 64(3), pages 401-431, July.
    7. Andrew E. Clark, 2008. "Happiness, habits and high rank: Comparisons in economic and social life," PSE Working Papers halshs-00586049, HAL.
    8. Betsey Stevenson & Justin Wolfers, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 1-102.
    9. Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2012. "The Solaria syndrome: Social capital in a growing hyper-technological economy," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 802-814.
    10. John F. Helliwell & Christopher P. Barrington‐Leigh, 2010. "Viewpoint: Measuring and understanding subjective well‐being," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(3), pages 729-753, August.
    11. Bilancini, Ennio & D'Alessandro, Simone, 2012. "Long-run welfare under externalities in consumption, leisure, and production: A case for happy degrowth vs. unhappy growth," Ecological Economics, Elsevier, vol. 84(C), pages 194-205.
    12. Bartolini, Stefano & Sarracino, Francesco, 2014. "Happy for how long? How social capital and economic growth relate to happiness over time," Ecological Economics, Elsevier, vol. 108(C), pages 242-256.
    13. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    14. Conchita D'Ambrosio & Joachim R. Frick, 2012. "Individual Wellbeing in a Dynamic Perspective," Economica, London School of Economics and Political Science, vol. 79(314), pages 284-302, April.
    15. Stefano Bartolini & Ennio Bilancini, 2011. "Social Participation and Hours Worked," Department of Economics University of Siena 620, Department of Economics, University of Siena.
    16. Leonardo Becchettibecchetti & Luisa Corrado & Pierluigi Conzo, 2017. "Sociability, altruism and well-being," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(2), pages 441-486.
    17. Kaiser, Caspar & Vendrik, Maarten C. M., 2019. "How threatening are transformations of reported happiness to subjective wellbeing research?," SocArXiv gzt7a, Center for Open Science.
    18. Stefano Bartolini & Małgorzata Mikucka & Francesco Sarracino, 2017. "Money, Trust and Happiness in Transition Countries: Evidence from Time Series," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 87-106, January.
    19. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    20. Stefano Bartolini & Ennio Bilancini & Maurizio Pugno, 2013. "Did the Decline in Social Connections Depress Americans’ Happiness?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 1033-1059, February.
    21. Rainer Winkelmann, 2009. "Unemployment, Social Capital, and Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 10(4), pages 421-430, August.
    22. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
    23. Stefano Bartolini & Francesco Sarracino, 2017. "Twenty-Five Years of Materialism: Do the US and Europe Diverge?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 787-817, September.
    24. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    25. Francesco Sarracino & Małgorzata Mikucka, 2017. "Social Capital in Europe from 1990 to 2012: Trends and Convergence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(1), pages 407-432, March.
    26. Stefano Bartolini & Ennio Bilancini & Francesco Sarracino, 2013. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 169-191, November.
    27. John Helliwell, 2007. "Well-Being and Social Capital: Does Suicide Pose a Puzzle?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(3), pages 455-496, May.
    28. Carlo Klein, 2013. "Social Capital or Social Cohesion: What Matters For Subjective Well-Being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 891-911, February.
    29. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "The 60es turnaround as a test on the causal relationship between sociability and happiness," Econometica Working Papers wp07, Econometica.
    30. Bartolini, Stefano & Bonatti, Luigi, 2008. "Endogenous growth, decline in social capital and expansion of market activities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 917-926, September.
    31. Dora L. Costa & Matthew E. Kahn, 2003. "Understanding the American Decline in Social Capital, 1952–1998," Kyklos, Wiley Blackwell, vol. 56(1), pages 17-46, February.
    32. John F. Helliwell & Christopher P. Barrington-Leigh, 2010. "Measuring and Understanding Subjective Well-Being," NBER Working Papers 15887, National Bureau of Economic Research, Inc.
    33. John Helliwell & Haifang Huang & Shun Wang, 2014. "Social Capital and Well-Being in Times of Crisis," Journal of Happiness Studies, Springer, vol. 15(1), pages 145-162, February.
    34. Ed Diener & Eunkook Suh, 1997. "Measuring Quality Of Life: Economic, Social, And Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 40(1), pages 189-216, January.
    35. John F. Helliwell, 2006. "Well-Being, Social Capital and Public Policy: What's New?," Economic Journal, Royal Economic Society, vol. 116(510), pages 34-45, March.
    36. Bartolini, Stefano & Sarracino, Francesco, 2015. "The Dark Side of Chinese Growth: Declining Social Capital and Well-Being in Times of Economic Boom," World Development, Elsevier, vol. 74(C), pages 333-351.
    37. Katarzyna Growiec & Jakub Growiec, 2014. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries," Journal of Happiness Studies, Springer, vol. 15(5), pages 1015-1040, October.
    38. Mikucka, Malgorzata & Sarracino, Francesco & Dubrow, Joshua K., 2017. "When Does Economic Growth Improve Life Satisfaction? Multilevel Analysis of the Roles of Social Trust and Income Inequality in 46 Countries, 1981–2012," World Development, Elsevier, vol. 93(C), pages 447-459.
    39. Stefano Bartolini & Francesco Sarracino, 2014. "It's not the economy, stupid! How social capital and GDP relate to happiness over time," Papers 1411.2138, arXiv.org.
    40. Heikkinen, T., 2015. "(De)growth and welfare in an equilibrium model with heterogeneous consumers," Ecological Economics, Elsevier, vol. 116(C), pages 330-340.
    41. Hilke Brockmann & Jan Delhey & Christian Welzel & Hao Yuan, 2009. "The China Puzzle: Falling Happiness in a Rising Economy," Journal of Happiness Studies, Springer, vol. 10(4), pages 387-405, August.
    42. Leonardo Becchetti & Giovanni Trovato & David Andres Londono Bedoya, 2011. "Income, relational goods and happiness," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 273-290.
    43. Barış Alpaslan, 2017. "Are Human and Social Capital Linked? Evidence from India," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 859-881, November.
    44. Ekaterina Skoglund, 2017. "The happiness gap between transition and non-transition countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 357-357, May.
    45. Bartolini, Stefano & Bilancini, Ennio & Bruni, Luigino & Porta, Pier Luigi (ed.), 2016. "Policies for Happiness," OUP Catalogue, Oxford University Press, number 9780198758730, Decembrie.
    46. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    47. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    48. John F. Helliwell & Lara B. Aknin & Hugh Shiplett & Haifang Huang & Shun Wang, 2017. "Social Capital and Prosocial Behaviour as Sources of Well-Being," NBER Working Papers 23761, National Bureau of Economic Research, Inc.
    49. Ed Diener & Ed Sandvik & Larry Seidlitz & Marissa Diener, 1993. "The relationship between income and subjective well-being: Relative or absolute?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 28(3), pages 195-223, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. l. Moro-Egido & M. Navarro & A. Sánchez, 2022. "Changes in Subjective Well-Being Over Time: Economic and Social Resources do Matter," Journal of Happiness Studies, Springer, vol. 23(5), pages 2009-2038, June.
    2. Robson Morgan & Kelsey J. O’Connor, 2022. "Labor Market Policy and Subjective Well-Being During the Great Recession," Journal of Happiness Studies, Springer, vol. 23(2), pages 391-422, February.
    3. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.
    4. Quintal, Carlota & Ramos, Luís Moura & Torres, Pedro, 2023. "Disentangling the complexities of modelling when high social capital contributes to indicating good health," Social Science & Medicine, Elsevier, vol. 320(C).
    5. Thi Truong An Hoang & Andreas Knabe, 2022. "Social Contacts, Unemployment, and Experienced Well-Being. Evidence from Time-Use Data," CESifo Working Paper Series 9953, CESifo.
    6. Dimitris Ballas & Ilias Thanis, 2022. "Exploring the Geography of Subjective Happiness in Europe During the Years of the Economic Crisis: A Multilevel Modelling Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 105-137, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarracino, Francesco & O'Connor, Kelsey J. & Ono, Hiroshi, 2019. "Making economic growth and well-being compatible: evidence from Japan," MPRA Paper 93010, University Library of Munich, Germany.
    2. Francesco Sarracino & Małgorzata Mikucka, 2019. "Consume More, Work Longer, and Be Unhappy: Possible Social Roots of Economic Crisis?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(1), pages 59-84, March.
    3. Maurizio Pugno & Francesco Sarracino, 2021. "Structural Changes in Economic Growth and Well-Being: The Case of Italy’s Parabola," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 801-838, December.
    4. Bartolini, Stefano & Sarracino, Francesco, 2015. "The Dark Side of Chinese Growth: Declining Social Capital and Well-Being in Times of Economic Boom," World Development, Elsevier, vol. 74(C), pages 333-351.
    5. Bartolini, Stefano & Sarracino, Francesco, 2014. "The dark side of Chinese growth: Explaining decreasing well-being in times of economic boom," MPRA Paper 57765, University Library of Munich, Germany.
    6. Stefano Bartolini & Francesco Sarracino, 2021. "Happier and Sustainable. Possibilities for a post-growth society," Department of Economics University of Siena 855, Department of Economics, University of Siena.
    7. Mikucka, Malgorzata & Sarracino, Francesco & Dubrow, Joshua K., 2017. "When Does Economic Growth Improve Life Satisfaction? Multilevel Analysis of the Roles of Social Trust and Income Inequality in 46 Countries, 1981–2012," World Development, Elsevier, vol. 93(C), pages 447-459.
    8. Mikucka, Malgorzata & Sarracino, Francesco, 2014. "Making economic growth and well-being compatible: the role of trust and income inequality," MPRA Paper 59695, University Library of Munich, Germany.
    9. Stefano Bartolini & Małgorzata Mikucka & Francesco Sarracino, 2017. "Money, Trust and Happiness in Transition Countries: Evidence from Time Series," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 87-106, January.
    10. Stefano Bartolini & Ennio Bilancini & Francesco Sarracino, 2013. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 169-191, November.
    11. Sarracino, Francesco, 2013. "Determinants of subjective well-being in high and low income countries: Do happiness equations differ across countries?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 51-66.
    12. Marcin Piekalkiewicz, 2016. "Money, Social Capital and Materialism. Evidence from Happiness Data," Department of Economics University of Siena 731, Department of Economics, University of Siena.
    13. Christoph Glatz & Anja Eder, 2020. "Patterns of Trust and Subjective Well-Being Across Europe: New Insights from Repeated Cross-Sectional Analyses Based on the European Social Survey 2002–2016," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(2), pages 417-439, April.
    14. Stefano Bartolini & Francesco Sarracino, 2014. "It's not the economy, stupid! How social capital and GDP relate to happiness over time," Papers 1411.2138, arXiv.org.
    15. Francesco Sarracino & Kelsey J. O’Connor, 2021. "Economic growth and well-being beyond the Easterlin paradox," Chapters, in: Luigino Bruni & Alessandra Smerilli & Dalila De Rosa (ed.), A Modern Guide to the Economics of Happiness, chapter 9, pages 162-188, Edward Elgar Publishing.
    16. Bartolini, Stefano & Sarracino, Francesco, 2014. "Happy for how long? How social capital and economic growth relate to happiness over time," Ecological Economics, Elsevier, vol. 108(C), pages 242-256.
    17. Leonardo Becchetti & Alessandra Pelloni, 2013. "What are we learning from the life satisfaction literature?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(2), pages 113-155, June.
    18. Vanessa Sha Fan & Renuka Mahadevan, 2019. "The Role of Social Capital and Remote Chinese Villagers’ Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1109-1128, June.
    19. T. Lakshmanasamy & K. Maya, 2020. "The Effect of Income Inequality on Happiness Inequality in India: A Recentered Influence Function Regression Estimation and Life Satisfaction Inequality Decomposition," Indian Journal of Human Development, , vol. 14(2), pages 161-181, August.
    20. A. l. Moro-Egido & M. Navarro & A. Sánchez, 2022. "Changes in Subjective Well-Being Over Time: Economic and Social Resources do Matter," Journal of Happiness Studies, Springer, vol. 23(5), pages 2009-2038, June.

    More about this item

    Keywords

    Economic crisis; life satisfaction; Social capital; Income; Decomposition; Europe;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jhappi:v:22:y:2021:i:4:d:10.1007_s10902-020-00285-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.