Welfare State and Life Satisfaction: Evidence from Public Health Care

19 Pages Posted: 7 Jun 2010

See all articles by Kaisa Kotakorpi

Kaisa Kotakorpi

University of Turku - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Jani-Petri Laamanen

Tampere University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: 2008-03-31

Abstract

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.

Suggested Citation

Kotakorpi, Kaisa and Laamanen, Jani-Petri, Welfare State and Life Satisfaction: Evidence from Public Health Care (2008-03-31). Economica, Vol. 77, Issue 307, pp. 565-583, July 2010, Available at SSRN: https://ssrn.com/abstract=1620621 or http://dx.doi.org/10.1111/j.1468-0335.2008.00769.x

Kaisa Kotakorpi (Contact Author)

University of Turku - Department of Economics ( email )

Turku
Finland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Jani-Petri Laamanen

Tampere University - Department of Economics ( email )

P.O. Box 607
Tampere, FIN-33101
Finland

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