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Life Satisfaction and Preferences over Economic Growth and Institutional Quality

Author

Listed:
  • Duha T. Altindag

    (Auburn University)

  • Junyue Xu

    (Moody’s Analytics)

Abstract

This paper demonstrates that institutional factors have differential impacts on subjective well-being of individuals in rich versus poor countries. A lower level of corruption, a more democratic government and better civil rights increase the well-being of individuals in rich countries, whereas an increase in per capita income has no impact. On the contrary, in poor countries the extent of corruption, democracy or civil rights has no influence on happiness, but an increase in per capita income impacts happiness positively. We provide evidence that this stark contrast may be due to the difference of preferences over economic growth and institutional factors.

Suggested Citation

  • Duha T. Altindag & Junyue Xu, 2017. "Life Satisfaction and Preferences over Economic Growth and Institutional Quality," Journal of Labor Research, Springer, vol. 38(1), pages 100-121, March.
    • Handle: RePEc:spr:jlabre:v:38:y:2017:i:1:d:10.1007_s12122-016-9235-2
    DOI: 10.1007/s12122-016-9235-2
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    Cited by:

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    2. Shu Guo & ZhongXiang Zhang, 2021. "Can the diligent governance increase subjective wellbeing? New evidence from environmental regulations in China," Working Papers 2021.31, Fondazione Eni Enrico Mattei.
    3. Qiang Li & Lian An, 2020. "Corruption Takes Away Happiness: Evidence from a Cross-National Study," Journal of Happiness Studies, Springer, vol. 21(2), pages 485-504, February.
    4. Grace Carolina Guevara-Rosero & Andrea Gabriela Bonilla-Bolaños, 2021. "Non-pecuniary Effects of Migration Inflows to Ecuador: Is Residents’ Life Satisfaction Affected?," Journal of International Migration and Integration, Springer, vol. 22(4), pages 1243-1270, December.
    5. Jie Zhu & Chuntian Lu & Anrui Song, 2023. "Air Pollution Governance and Residents’ Happiness: Evidence of Blue Sky Defense in China," Sustainability, MDPI, vol. 15(21), pages 1-17, October.

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