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Economic Hardship and Well-Being: Examining the Relative Role of Individual Resources and Welfare State Effort in Resilience Against Economic Hardship

Author

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  • Tim Reeskens

    (Tilburg University)

  • Leen Vandecasteele

    (University of Tuebingen)

Abstract

With the aftermath of the economic crisis starting to fold out, the extent and the conditions under which the experience of economic hardship thwarts subjective well-being spark academic interest. In this paper, we examine the cushioning impact of three immaterial buffers embedded within civil society—namely social networks, religiosity, and confidence in politics—in combination with the cushioning role of the welfare state. Analyzing the 2010 wave of the European Social Survey, the results confirm that the experience of economic hardship is inversely related to happiness. All three proposed protective measures cushion the negative impact of economic strain on happiness, whereby the positive effect of social networks and confidence in politics is stronger in countries with lower levels of social expenditure. The latter finding provides some evidence for the crowding out-thesis but mainly suggests that a strong welfare state can take over the role of protective buffers in civil society, which is helpful as such buffers are less present among the most vulnerable social groups. The results of the analysis are discussed in relation to social science research and public policy.

Suggested Citation

  • Tim Reeskens & Leen Vandecasteele, 2017. "Economic Hardship and Well-Being: Examining the Relative Role of Individual Resources and Welfare State Effort in Resilience Against Economic Hardship," Journal of Happiness Studies, Springer, vol. 18(1), pages 41-62, February.
    • Handle: RePEc:spr:jhappi:v:18:y:2017:i:1:d:10.1007_s10902-016-9716-2
    DOI: 10.1007/s10902-016-9716-2
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    3. Y. Grift & Annette van den Berg & Tina Dulam, 2021. "Economic hardship, institutions and subjective well-being in Latin America," Working Papers 2106, Utrecht School of Economics.
    4. Dee Warmath & Pan‐Ju Chen & John Grable & Eun Jin Kwak, 2021. "Soft landings: Extending the cushion hypothesis to financial well‐being in collectivistic cultures," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1563-1590, December.
    5. Hamenoo, Emma Seyram, 2024. "Social workers’ perspective on the impact of Covid-19 on clients’ vulnerability in Ghana," Children and Youth Services Review, Elsevier, vol. 160(C).

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