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Subjective economic well-being in Eastern Europe

  • Hayo, Bernd
  • Seifert, Wolfgang

This paper analyses subjective economic well-being in several Eastern European countries from 1991 to 1995. Economic well-being explains a significant part of the variation in overall life satisfaction of Eastern Europeans. In an ordered logit model, the determinants of subjective economic well-being are analysed. Some results are very similar to typical findings in happiness regressions, such as a negative but u-shaped age effect, positive influences of education and relative income position, as well as a negative effect of unemployment. Differing results were found with regard to gender and marital status. Finally, comparing indicators of objective and subjective well-being on a macro level indicates that using a standard macro variable for crosscountry comparisons in well-being, such as real GDP per capita, may provide misleading results during the early stages of transformation.

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Paper provided by University of Duisburg-Essen, Institute of Business and Economic Studie (IBES) in its series IBES Diskussionsbeiträge with number 120.

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Date of creation: 2002
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Handle: RePEc:zbw:udewwd:120
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