Human Capital and Life Satisfaction in Economic Transition

20 Pages Posted: 18 Apr 2017

See all articles by Hannah C. Silver

Hannah C. Silver

Waddell & Reed Financial Advisors

Steven B. Caudill

Auburn University - Department of Economics

Franklin G. Mixon Jr.

Columbus State University

Date Written: April 2017

Abstract

This study explores the life satisfaction of Egyptians – with a particular focus on the impact of higher education on happiness – both before and after that country's Arab Spring of 2011. Ordered logit results point to positive and significant relationships between life satisfaction and both perceived high incomes and the human capital variable, good health, for the pre‐ and post‐Arab Spring periods in Egypt, thus confirming prior studies of transition economies. For a second human capital variable – secondary education – the results indicate a positive and significant relationship with happiness in pre‐Arab Spring Egypt, while that relationship for post‐Arab Spring Egypt is negative and significant. This particular finding is probably the result of the failure of educated Egyptians to achieve a better life despite their investments in human capital – due to the lack of opportunity that accompanied the failure of the country's Arab Spring to change the political and social environment.

Keywords: Economic transition, happiness, health, human capital

Suggested Citation

Silver, Hannah C. and Caudill, Steven B. and Mixon Jr., Franklin G., Human Capital and Life Satisfaction in Economic Transition (April 2017). Economics of Transition, Vol. 25, Issue 2, pp. 165-184, 2017, Available at SSRN: https://ssrn.com/abstract=2954213 or http://dx.doi.org/10.1111/ecot.12116

Hannah C. Silver (Contact Author)

Waddell & Reed Financial Advisors ( email )

United States

Steven B. Caudill

Auburn University - Department of Economics ( email )

415 W. Magnolia
Auburn, AL 36849-5242
United States
334-844-2907 (Phone)

Franklin G. Mixon Jr.

Columbus State University ( email )

Columbus, GA 31907-5645
United States

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