Subjective Economic Well-Being in Eastern Europe

University of Essen, Economics Department, Working Paper No. 120

27 Pages Posted: 20 Mar 2002

See all articles by Bernd Hayo

Bernd Hayo

University of Marburg - School of Business & Economics

Wolfgang Seifert

Government of Brandenburg State, Germany - State Office for Data Processing and Statistics

Date Written: February 2002

Abstract

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 cross-country comparisons in well-being, such as real GDP per capita, may provide misleading results during the early stages of transformation.

Keywords: Eastern Europe, Economic Well-being, Happiness, Economic Transformation

JEL Classification: D31, D60, I31, O52, P2

Suggested Citation

Hayo, Bernd and Seifert, Wolfgang, Subjective Economic Well-Being in Eastern Europe (February 2002). University of Essen, Economics Department, Working Paper No. 120. Available at SSRN: https://ssrn.com/abstract=304041 or http://dx.doi.org/10.2139/ssrn.304041

Bernd Hayo (Contact Author)

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

Wolfgang Seifert

Government of Brandenburg State, Germany - State Office for Data Processing and Statistics ( email )

Postfach 60 10 52
14467 Potsdam
Germany

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