IDEAS home Printed from https://ideas.repec.org/a/zna/indecs/v18y2020i2p135-154.html
   My bibliography  Save this article

The nexus between welfare state and subjective well-being: A multi-level assessment

Author

Listed:
  • Fassil Sisay Yehuala

    (School of Policy Studies, Addis Ababa, Ethiopia)

Abstract

This article explores the nexus between welfare state and subjective well-being in 20 countries drawing on data from World Value Survey, wave 6. Multi-level mixed-effects restricted maximum likelihood approach that uses fixed-effects and random-effects techniques was applied. This article argues that national differences can explain little of the variations in citizens' subjective well being. In relatively developed welfare states, the effect of welfare typologies on individual-level subjective well-being is insignificant. However, there is a visible difference in subjective well-being between citizens living in and out of European/OECD welfare regimes. Moreover, while higher public social expenditure exerts higher aggregate subjective well-being, there is no connection between the spending and individual-level subjective well-being. What is more, net pension replacement rate does not have an effect on aggregate and individual-level subjective well-being.

Suggested Citation

  • Fassil Sisay Yehuala, 2020. "The nexus between welfare state and subjective well-being: A multi-level assessment," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2A), pages 135-154.
    • Handle: RePEc:zna:indecs:v:18:y:2020:i:2:p:135-154
    as

    Download full text from publisher

    File URL: http://indecs.eu/2020/indecs2020-pp135-154.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Astra Bonini, 2008. "Cross-National Variation in Individual Life Satisfaction: Effects of National Wealth, Human Development, and Environmental Conditions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(2), pages 223-236, June.
    2. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    3. Kaisa Kotakorpi & Jani‐Petri Laamanen, 2010. "Welfare State and Life Satisfaction: Evidence from Public Health Care," Economica, London School of Economics and Political Science, vol. 77(307), pages 565-583, July.
    4. Ruud Muffels & Didier Fouarge, 2004. "The Role of European Welfare States in Explaining Resources Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 68(3), pages 299-330, September.
    5. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    6. Ellen L. Idler & Julie McLaughlin & Stanislav Kasl, 2009. "Religion and the Quality of Life in the Last Year of Life," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 64(4), pages 528-537.
    7. Marc Fleurbaey, 2009. "Beyond GDP: The Quest for a Measure of Social Welfare," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 1029-1075, December.
    8. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    9. Ruut Veenhoven, 2000. "The Four Qualities of Life," Journal of Happiness Studies, Springer, vol. 1(1), pages 1-39, March.
    10. Alexander Pacek & Benjamin Radcliff, 2008. "Welfare Policy and Subjective Well-Being Across Nations: An Individual-Level Assessment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 89(1), pages 179-191, October.
    11. A. B. Atkinson, 1999. "The Economic Consequences of Rolling Back the Welfare State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011719, December.
    12. Kathrin Rochlitz, 2015. "Net Pension Replacement Rates," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(2), pages 70-72, 08.
    13. Lane Kenworthy & Jonas Pontusson, 2005. "Rising Inequality and the Politics of Redistribution in Affluent Countries," LIS Working papers 400, LIS Cross-National Data Center in Luxembourg.
    14. Filip Fors & Joakim Kulin, 2016. "Bringing Affect Back in: Measuring and Comparing Subjective Well-Being Across Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 323-339, May.
    15. Kathrin Rochlitz, 2015. "Net Pension Replacement Rates," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 70-72, August.
    16. repec:ces:ifodic:v:13:y:2015:i:2:p:19166303 is not listed on IDEAS
    17. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    18. Marina Della Giusta & Sarah Louise Jewell & Uma Kambhampati, 2011. "Gender and Life Satisfaction in the UK," Feminist Economics, Taylor & Francis Journals, vol. 17(3), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. O'Donnell, Gus & Oswald, Andrew J., 2015. "National well-being policy and a weighted approach to human feelings," Ecological Economics, Elsevier, vol. 120(C), pages 59-70.
    2. Sarah Brown & Alexandros Kontonikas & Alberto Montagnoli & Mirko Moro & Luisanna Onnis, 2018. "Austerity, Life Satisfaction and Expectations," Working Papers 2018001, The University of Sheffield, Department of Economics.
    3. Brown, Sarah & Kontonikas, Alexandros & Montagnoli, Alberto & Moro, Mirko & Onnis, Luisanna, 2021. "Life satisfaction and austerity: Expectations and the macroeconomy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    4. Juncal Cuñado & Fernando Gracia, 2012. "Does Education Affect Happiness? Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 185-196, August.
    5. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.
    6. Badunenko, Oleg & Cordero, Jose M. & Kumbhakar, Subal C., 2021. "Are you slacking? Where do you and your country stand in the happiness pursuit?," MPRA Paper 108316, University Library of Munich, Germany.
    7. Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
    8. Fernandez, Antonia & Della Giusta, Marina & Kambhampati, Uma S., 2015. "The Intrinsic Value of Agency: The Case of Indonesia," World Development, Elsevier, vol. 70(C), pages 92-107.
    9. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    10. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    11. Alexandru Cojocaru, 2016. "Does Relative Deprivation Matter in Developing Countries: Evidence from Six Transition Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(3), pages 735-756, February.
    12. V. K. Shrotryia & Shashank Vikram Pratap Singh, 2020. "Measuring Progress Beyond GDP: A Theoretical Perspective," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 143-165, November.
    13. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2006. "Income and happiness: Evidence, explanations and economic implications," PSE Working Papers halshs-00590436, HAL.
    14. Sechel, Cristina, 2021. "The share of satisfied individuals: A headcount measure of aggregate subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 373-394.
    15. Flèche, Sarah, 2015. "Distaste for centralization: evidence from a quasi-natural experiment in Switzerland," LSE Research Online Documents on Economics 64999, London School of Economics and Political Science, LSE Library.
    16. Salvatori, Andrea, 2010. "Labour contract regulations and workers' wellbeing: International longitudinal evidence," Labour Economics, Elsevier, vol. 17(4), pages 667-678, August.
    17. Rehdanz, Katrin & Maddison, David, 2005. "Climate and happiness," Ecological Economics, Elsevier, vol. 52(1), pages 111-125, January.
      • Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    18. Blanchflower, David G & Oswald, Andrew, 2011. "International Happiness," CAGE Online Working Paper Series 39, Competitive Advantage in the Global Economy (CAGE).
    19. Andrew E. Clark & Claudia Senik, 2010. "Will GDP growth increase happiness in developing countries?," PSE Working Papers halshs-00564985, HAL.
    20. Marta Orviska & Anetta Caplanova & John Hudson, 2014. "The Impact of Democracy on Well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 493-508, January.

    More about this item

    Keywords

    welfare state; subjective well-being. SWB; life satisfaction;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zna:indecs:v:18:y:2020:i:2:p:135-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Josip Stepanic (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.