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Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe

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  • Andrés Rodríguez-Pose
  • Kristina Maslauskaite
Abstract
Rapid economic convergence in Central and Eastern European (CEE) countries has not been matched by a similarly rapid increase in life satisfaction. This paper sets out to address this conundrum, by looking at the individual and macro-level determinants of individual life satisfaction in 10 CEE countries. The results highlight that macroeconomic and institutional differences are the key factors behind the lack of convergence in life satisfaction. On the macroeconomic side, Gross Domestic Product growth is still a source of increasing well-being, but the happiness bonus associated with it is becoming smaller. The different levels of individual happiness in CEE are therefore mostly determined by institutional factors such as corruption, government spending and decentralization. Copyright 2011, Oxford University Press.

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  • Andrés Rodríguez-Pose & Kristina Maslauskaite, 2011. "Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 5(1), pages 77-96.
    • Handle: RePEc:oup:cjrecs:v:5:y:2011:i:1:p:77-96
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    File URL: http://hdl.handle.net/10.1093/cjres/rsr038
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    2. Asadullah, M. Niaz & Xiao, Saizi & Yeoh, Emile, 2018. "Subjective well-being in China, 2005–2010: The role of relative income, gender, and location," China Economic Review, Elsevier, vol. 48(C), pages 83-101.
    3. Titus Corlatean, 2019. "Right to Happiness – A Challenge for International Organizations and Governments," Proceedings of the 14th International RAIS Conference, August 19-20, 2019 008TC, Research Association for Interdisciplinary Studies.
    4. Nazim Habibov & Elvin Afandi, 2015. "Pre- and Post-crisis Life-Satisfaction and Social Trust in Transitional Countries: An Initial Assessment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 503-524, April.
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    6. Camilla Lenzi & Giovanni Perucca, 2016. "Life Satisfaction across Cities: Evidence from Romania," Journal of Development Studies, Taylor & Francis Journals, vol. 52(7), pages 1062-1077, July.
    7. Sergei Guriev & Ekaterina Zhuravskaya, 2009. "(Un)happiness in Transition," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 143-168, Spring.
    8. Nazim Habibov & Alena Auchynnikava & Rong Luo, 2019. "Does Community Level Trust Improve Self-Rated Welfare?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 669-697, December.
    9. repec:prg:jnlpep:v:preprint:id:658:p:1-18 is not listed on IDEAS
    10. Nikolova, Milena, 2016. "Minding the happiness gap: Political institutions and perceived quality of life in transition," European Journal of Political Economy, Elsevier, vol. 45(S), pages 129-148.
    11. Camilla Lenzi & Giovanni Perucca, 2020. "The nexus between innovation and wellbeing across the EU space: What role for urbanisation?," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 323-349, February.
    12. Samuel Adedayo MUYIWA, 2021. "Influence of Politics of Governance on Management of Coronavirus in Nigeria," RAIS Journal for Social Sciences, Research Association for Interdisciplinary Studies, vol. 5(1), pages 29-38, May.
    13. Botezat, Alina, 2017. "Austerity plan announcements and the impact on the employees’ wellbeing," Journal of Economic Psychology, Elsevier, vol. 63(C), pages 1-16.
    14. repec:spo:wpmain:info:hdl:2441/7fst0pcf5j8cr99e1nuobt97rn is not listed on IDEAS
    15. Celia Dana BESCIU & Armenia ANDRONICEANU, 2017. "The link between social inequalities, health’ system characteristics and R&D expenditure- worldwide evidence," Romanian Statistical Review, Romanian Statistical Review, vol. 65(2), pages 21-41, June.
    16. Sujarwoto Sujarwoto & Gindo Tampubolon, 2015. "Decentralisation and Citizen Happiness: A Multilevel Analysis of Self-rated Happiness in Indonesia," Journal of Happiness Studies, Springer, vol. 16(2), pages 455-475, April.
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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