Subjective Well-Being and the 2008 Recession in European Regions: The Moderating Role of Quality of Governance

Efstratia Arampatzi,Frank G Van Oort,Spyridon Stavropoulos,Martijn J Burger

doi:10.1007/s42413-019-00022-0

Efstratia Arampatzi, Frank G Van Oort + Show 2 more

Open Access

https://doi.org/10.1007/s42413-019-00022-0

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Abstract

How can we explain why some regions experienced large decreases in subjective well-being during the 2008 recession, while in other regions, the changes were only very modest? Building on the literature on resilience in subjective well-being during periods of crisis, this article explores a related but undervalued factor that moderates the localized relationship between macroeconomic developments and life evaluation: regional quality of governance. We use individual-level data on life satisfaction and personal information taken from Eurobarometer for 89 European regions in the EU-28 for the period of 2005–2014, combined with macroeconomic variables and regional quality of governance data to test for the hypothesized moderating effect of quality of governance. The results demonstrate that increased regional unemployment and financial stress have a less aggravating effect on subjective well-being in regions characterized by a high quality of governance. These results support the capacity of quality of governance to buffer the negative effects of adverse macroeconomic conditions, most likely through generating trust and providing a safety net.

Highlights

Over the past few years, there has been increasing attention to subjective well-being, known as happiness or life satisfaction (Veenhoven 1984), in public policy and popular culture
How can we explain why some regions experienced large decreases in subjective wellbeing during the 2008 recession, while in other regions, the changes were only very modest? Building on the literature on resilience in subjective well-being during periods of crisis, this article explores a related but undervalued factor that moderates the localized relationship between macroeconomic developments and life evaluation: regional quality of governance
The results demonstrate that increased regional unemployment and financial stress have a less aggravating effect on subjective well-being in regions characterized by a high quality of governance

Summary

Introduction

Over the past few years, there has been increasing attention to subjective well-being, known as happiness or life satisfaction (Veenhoven 1984), in public policy and popular culture. We use individual-level data on life satisfaction and personal information taken from Eurobarometer for 89 European regions in the EU-28 for the period of 2005–2014, combined with macroeconomic variables and regional quality of governance data to test for the hypothesized moderating effect of quality of governance.

Results

Conclusion