The Nexus between Welfare State and Subjective Well-Being: A Multi-Level Assessment

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.