Welfare State and Life Satisfaction: Evidence from Public Health Care
University of Tampere - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
University of Tampere - Department of Economics
Economica, Vol. 77, Issue 307, pp. 565-583, July 2010
We examine the link between the welfare state and citizens' subjective wellbeing by using evidence from public health care services. By combining local-level data on public health care and individual-level data on life satisfaction, we show that relatively high expenditures in health care have a positive effect on individuals' life satisfaction in our data. We find some evidence for an ‘ends-against-the-middle’ equilibrium in provision of public health care, where middle-income individuals prefer higher public expenditure than low-income or high-income individuals. Further, our results indicate that the welfare benefit of public provision depends on individual political orientation.
Number of Pages in PDF File: 19Accepted Paper Series
Date posted: June 7, 2010
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