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Explaining the Dynamics and Drivers of Financial Well-Being in the European Union

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  • Monica Răileanu-Szeles

Abstract

This paper studies the dynamics and determinants of financial well-being in the EU-27 area, by comparatively examining its objective and subjective dimensions, based on Eurostat aggregated data. A common set of socio-economic drivers, including economic growth, has been explained in relation with the objective and subjective well-being, instrumented here by variables in the area of the upward income transitions and economic strain, with a view to finding out whether a common set of governmental policies could effectively target both the objective and subjective dimensions of financial well-being. The main econometric tools used in the paper are the generalized method of moments and the feasible generalized least-squares. The empirical results suggest that, while the impact of some determinants is similar for the objective and subjective financial well-being, the impact of others is divergent, in the sense that they could stimulate one dimension of well-being and hinder another. For instance, the paper finds that the social protection expenditure is more effective than the labour market policy expenditure when targeting the financial subjective well-being and the short upward income transitions, but the labour market policy expenditure becomes more effective when targeting the large upward income transitions. Overall, the empirical results indicate that it is difficult to aim at improving all dimensions of well-being by a common set of governmental policies within the EU-27. Copyright Springer Science+Business Media Dordrecht 2015

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  • Monica Răileanu-Szeles, 2015. "Explaining the Dynamics and Drivers of Financial Well-Being in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(3), pages 701-722, February.
    • Handle: RePEc:spr:soinre:v:120:y:2015:i:3:p:701-722
    DOI: 10.1007/s11205-014-0612-z
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    Cited by:

    1. Chenhong Peng & Paul S. F. Yip & Yik Wa Law, 2020. "What Factors Beyond Economic Poverty Lead People in High-income Societies to Feel Poor? Evidence from Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 991-1027, December.
    2. Monica Raileanu Szeles & Ileana Tache, 2016. "The Role of Education in Stimulating Economic Development in the Framework of Europe 2020 Strategy: Evidence from South-Eastern Europe," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 54-69.
    3. Monica Răileanu Szeles & Mihaela Simionescu, 2020. "Regional Patterns and Drivers of the EU Digital Economy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 95-119, July.
    4. Mahendru, Mandeep & Sharma, Gagan Deep & Pereira, Vijay & Gupta, Mansi & Mundi, Hardeep Singh, 2022. "Is it all about money honey? Analyzing and mapping financial well-being research and identifying future research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 417-436.
    5. Monica Răileanu Szeles, 2018. "Comparative Examination of Self-Perceived Health and Other Measures of the Quality of Life Across the EU-27," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 391-411, May.

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