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Macroeconomic conditions and well-being: do social interactions matter?

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  • Emilio Colombo
  • Valentina Rotondi
  • Luca Stanca

Abstract

We investigate the role played by social interactions in the transmission of the effects of macroeconomic conditions on well-being. Using survey data for a representative sample of Italian individuals, we find that social interactions play a dual role. On the one hand, the well-being of people who spend more time with their friends or go out more often is less sensitive to macroeconomic fluctuations. On the other hand, social interactions are negatively affected by worsening macroeconomic conditions, thus playing a relevant role in the transmission of macroeconomic shocks to subjective well-being. More specifically, the negative impact of downturns on the frequency of going out and active participation in associations significantly contributes to the adverse effects of recessions on satisfaction with life and with individual life domains.

Suggested Citation

  • Emilio Colombo & Valentina Rotondi & Luca Stanca, 2018. "Macroeconomic conditions and well-being: do social interactions matter?," Applied Economics, Taylor & Francis Journals, vol. 50(28), pages 3029-3038, June.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3029-3038
    DOI: 10.1080/00036846.2017.1414935
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    2. Antonino Callea & Dalila De Rosa & Giovanni Ferri & Francesca Lipari & Marco Costanzi, 2019. "Are More Intelligent People Happier? Emotional Intelligence as Mediator between Need for Relatedness, Happiness and Flourishing," Sustainability, MDPI, vol. 11(4), pages 1-12, February.
    3. Valeria Gattai & Piergiovanna Natale & Francesca Rossi, 2022. "Board Diversity and Outward FDI: Evidence from Europe," Working Papers 491, University of Milano-Bicocca, Department of Economics, revised Mar 2022.

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • 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

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