Abstract
This paper explores the relationship between social capital and happiness both in Europe as a whole, as well as in its four main geographical macro-regions—North, South, East and West—separately. We test the hypothesis of whether social capital, in its three-fold definition established by Coleman (Am J Sociol 94:S95–S120 1988)—trust, social interaction, and norms and sanctions—influences individual happiness across European countries and regions. The concept of social capital is further enriched by incorporating Putnam (Making democracy work—civic traditions in modern Italy. Princeton University Press, Princeton, 1993) and Olson (The rise and decline of nations—economic growth, stagflation, and social rigidities. Yale University Press, New Haven and London, 1982) type variables on associational activity. Using ordinal logistic regression analysis on data for 48,583 individuals from 25 European countries, we reach three main findings. First, social capital matters for happiness across the three dimensions considered. Second, the main drivers of the effects of social capital on happiness appear to be informal social interaction and general social, as well as institutional trust. And third, there are significant differences in how social capital interacts with happiness across different areas of Europe, with the connection being at is weakest in the Nordic countries.
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Notes
Following the happiness economics literature, this paper uses the terms well-being, life-satisfaction and happiness as synonyms.
We opted for an ordered logistic regression model because of its ability to capture the structure of our assumed generalized reported happiness function, as suggested by Blanchflower and Oswald (2004). An ordered logistic regression (ologit) can be seen as an extension to the logistic regression model. While the latter evaluates binary dependent variables, ologit models take into account dependent variables with more than two response categories ordered in a logical sequence i.e. from very unhappy to very happy. An alternative method would have been to run the regressions using ordinary least squares (OLS). We have conducted such analysis and, when OLS is used, neither the coefficients, nor the significance levels of both the control variables and the variables of social capital in question vary much with respect to the ologit analysis. This is in line with what is predicted by Ferrer-i-Carbonell and Frijters (2004). The OLS results of the analysis can be made available upon request.
Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, United Kingdom, Greece, Hungary, Ireland, Latvia, the Netherlands, Poland, Portugal, Romania, Sweden, Slovenia and Slovakia. Russia, Turkey, Norway, Ukraine and Israel (the non-EU members) were dropped from the dataset because of problems in comparability of some of the control variables. Complete datasets for Lithuania, Luxemburg, Italy and Malta were not available.
The reverse causality issue, as explained by Helliwell and Putnam (2004), refers to the possible two-way linkage between happiness and other factors. While one could assume that, say, healthier people are happier than others, one could also argue the opposite, that happier people generally are healthier than unhappy ones.
A similar method was used by Alesina et al. (2004). Instead of using the cluster option, they arbitrarily divided the answers ranging from 1 to 10 into two groups. This method proved to be unsatisfactory for the purpose of our analysis, since the various answers ranging from 1 to 10 are not equally distributed among the observations.
The full results, including the macroeconomic and socio-demographic variables, can be provided upon request.
The 11 happiness categories were divided as follows: 0, 1, 2, very unhappy, 3, 4, 5, fairly happy, 6, 7, happy, 8, 9, 10 very happy. Very happy was chosen to include the three scores 8, 9 and 10 to properly reflect the diversity of European countries when referring to the marginal effects. If only 9, 10 were chosen, only the Nordic countries would have been taken into consideration.
Given that the income comparison variable was only available for one wave of the ESS, for the sake of brevity, these results are not displayed in the paper. However, they can be made available upon request.
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Acknowledgments
We are grateful to the editor of the Journal of Happiness Studies, Antonella delle Fave, its coeditor for economics, Stephanie Rossouw, and a number of anonymous reviewers for their constructive comments and suggestions to successive drafts of this paper. The research leading to this paper would not have been possible without the generous financial support of the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013)/ERC grant agreement no 269868.
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Appendices
Appendix 1
Description of variables
Variable type | Variable | Description | Range | SD | Mean | Coding |
---|---|---|---|---|---|---|
Control Variable | Lgdpcap | Log of GDP per capita | 8.1–11.3 | 0.5788706 | 10.10462 | – |
Macroeconomic | lgdpcap2 | Log of GDP per capita squared | 66.1–128.3 | 1.135.264 | 10.24384 | – |
Inflation | Inflation rate of respective country | 1.3–15.3 | 232.473 | 3.422532 | – | |
Unemployment rate | Unemployment rate of respective country | 3.1–13.9 | 239.543 | 7.049566 | – | |
Inequality | Gini coefficient (= income inequality) | 23.4–37.7 | 3.874.474 | 29.00267 | – | |
Control Variable | Gender | Gender of respondent | 0–1 | 0.4998242 | 0.4865488 | Male = 1, female = 0 |
Socio-demographic | Age | Age of respondent | 15–90 | 17.55349 | 47.45001 | – |
Age2 | Age of respondent squared | 225–8100 | 1743.515 | 2559.622 | – | |
No edu | No education | 0–1 | 0.0663642 | 0.0044237 | Yes = 1, no = 0 | |
Primary edu | Primary Education | 0–1 | 0.230372 | 0.0562323 | Yes = 1, no = 0 | |
Secondary edu | Secondary Education | 0–1 | 0.498551 | 0.4618946 | Yes = 1, no = 0 | |
Tertiary edu | Tertiary Education | 0–1 | 0.4994964 | 0.4774495 | Yes = 1, no = 0 | |
Very good health | Very good health | 0–1 | 0.4159439 | 0.2225217 | Yes = 1, no = 0 | |
Good health | Good health | 0–1 | 0.4978669 | 0.4538085 | Yes = 1, no = 0 | |
Fair health | Fair health | 0–1 | 0.4354426 | 0.2542488 | Yes = 1, no = 0 | |
Bad health | Bad health | 0–1 | 0.2349899 | 0.0586601 | Yes = 1, no = 0 | |
Very bad health | Very bad health | 0–1 | 0.103176 | 0.0107609 | Yes = 1, no = 0 | |
Unemployed | Respondent unemployed | 0–1 | 0.2261212 | 0.0540513 | Yes = 1, no = 0 | |
Married | Marital status: married | 0–1 | 0.4987874 | 0.5348751 | Yes = 1, no = 0 | |
Couple | Marital status: couple | 0–1 | 0.1531499 | 0.0240319 | Yes = 1, no = 0 | |
Separated | Marital status: separated | 0–1 | 0.1171141 | 0.0139089 | Yes = 1, no = 0 | |
Divorced | Marital status: divorced | 0–1 | 0.2742934 | 0.0819514 | Yes = 1, no = 0 | |
Widowed | Marital status: widowed | 0–1 | 0.2666153 | 0.0770133 | Yes = 1, no = 0 | |
Single | Marital status: single | 0–1 | 0.4411016 | 0.264557 | Yes = 1, no = 0 | |
Big city | Domicile: big city | 0–1 | 0.3969727 | 0.1960002 | Yes = 1, no = 0 | |
Suburb | Domicile: suburb of a big city | 0–1 | 0.334481 | 0.1283486 | Yes = 1, no = 0 | |
Town | Domicile: town | 0–1 | 0.4652893 | 0.3169417 | Yes = 1, no = 0 | |
Village | Domicile: village | 0–1 | 0.4541886 | 0.290914 | Yes = 1, no = 0 | |
Country side | Domicile: countryside | 0–1 | 0.2513973 | 0.0677956 | Yes = 1, no = 0 | |
Political orientation | Political orientation of the respondent | 0–1 | 0.4759817 | 0.290914 | Right = 1, left = 0 | |
Income 1 | Household’s total net income, all sources: 1st quantile | 0–1 | 0.3267789 | 0.1215588 | Yes = 1, no = 0 | |
Income 2 | Household’s income: 2nd quintile | 0–1 | 0.407013 | 0.2095799 | Yes = 1, no = 0 | |
Income 3 | Household’s income: 3rd quintile | 0–1 | 0.3977898 | 0.1970701 | Yes = 1, no = 0 | |
Income 4 | Household’s income: 4th quintile | 0–1 | 0.4095151 | 0.2131188 | Yes = 1, no = 0 | |
Income 5 | Household’s income: 5th quintile | 0–1 | 0.3360518 | 0.1297683 | Yes = 1, no = 0 | |
Income comparison | Importance of comparing the own income with other people’s | 1–6 | 1.828237 | 2.280028 | 1 = not important 6 = very important | |
Social capital: trust | Trust people | Most people can be trusted in dealing with people | 0–1 | 0.4979426 | 0.4546315 | Yes = 1, no = 0 |
Social trust | Trust legal system | Trust in the legal system | 0–1 | 0.4995074 | 0.4776964 | Trust = 1, no trust = 0 |
Satisfaction health system | Satisfaction with the health system | 0–1 | 0.4999977 | 0.5027365 | Satisfied = 1, unsatisfied = 0 | |
Satisfaction education system | Satisfaction with the education system | 0–1 | 0.4845722 | 0.6232665 | Satisfied = 1, unsatisfied = 0 | |
Social capital: information channels | Never meet | Meet socially with friends, relatives or work colleagues: never | 0–1 | 0.1171995 | 0.0139295 | Yes = 1, no = 0 |
Putnam-type (in)formal social interaction | Less than once | Meet socially: less than once a month | 0–1 | 0.2565956 | 0.0708613 | Yes = 1, no = 0 |
Once a month | Meet socially: once a month | 0–1 | 0.2835378 | 0.0881651 | Yes = 1, no = 0 | |
Several times a month | Meet socially: several times a month | 0–1 | 0.3924775 | 0.1902185 | Yes = 1, no = 0 | |
Once a week | Meet socially: once a week | 0–1 | 0.3897904 | 0.1868442 | Yes = 1, no = 0 | |
Several times a week | Meet socially: several times a week | 0–1 | 0.453685 | 0.2898235 | Yes = 1, no = 0 | |
Everyday | Meet socially: everyday | 0–1 | 0.3667563 | 0.160158 | Yes = 1, no = 0 | |
Voluntary work | Participation in voluntary work | 0–1 | 0.4519313 | 0.2860788 | Yes = 1, no = 0 | |
Church attendance | Frequency of church attendance | 1–7 | 2.527015 | 1.508663 | 1 = never 2 = less often 3 = only on special holy days 4 = at least once a month 5 = once a week 6 = more than once a week 7 = everyday | |
Work political party | Work in a political party or action group | 0–1 | 0.2043219 | 0.0436521 | Yes = 1, no = 0 | |
Olson-type formal social interaction | Contacted politician | Contacted a politician | 0–1 | 0.3693793 | 0.1630108 | Yes = 1, no = 0 |
Worn campaign badge | Worn or displayed a campaign badge/sticker | 0–1 | 0.2727716 | 0.0809568 | Yes = 1, no = 0 | |
Participation demonstration | Participation in a lawful demonstration | 0–1 | 0.2515144 | 0.0678637 | Yes = 1, no = 0 | |
Member trade union | Member of a trade union or similar organization | 0–1 | 0.4988599 | 0.4661783 | Yes = 1, no = 0 | |
Work for professional association | Member in a professional association or organization | 0–1 | 0.378035 | 0.1727501 | Yes = 1, no = 0 | |
Social capital: norms and sanctions | Feeling of safety | Feeling of safety when walking alone outside after dark | 0–1 | 0.4171462 | 0.7756677 | Yes = 1, no = 0 |
People fair | Most people try to take advantage of you/try to be fair | 0–1 | 0.4318647 | 0.7519855 | Yes = 1, no = 0 | |
Worry about home | How often worry about your home being burgled | 0–1 | 0.4570253 | 0.2971894 | Worry = 1 not worry = 0 | |
Worry becoming victim | How often worry about becoming a victim of violent crime | 0–1 | 0.3952611 | 0.193778 | Worry = 1 not worry = 0 |
Appendix 2
Number of observations by country and round
Country | ESS 2006 | ESS 2008 |
---|---|---|
Austria | 2,405 | – |
Belgium | 1,798 | 1,760 |
Bulgaria | 1,400 | 2,230 |
Cyprus | 995 | – |
Czech Republic | – | 2,018 |
Germany | 2,916 | 2,751 |
Denmark | 1,505 | 1,610 |
Estonia | 1,517 | 1,661 |
Spain | 1,876 | 2,576 |
Finland | 1,896 | 2,195 |
France | 1,986 | 2,073 |
United Kingdom | 2,394 | 2,352 |
Greece | – | 2,072 |
Hungary | 1,518 | 1,544 |
Ireland | 1,800 | 1,764 |
Latvia | – | 1,980 |
Netherlands | 1,889 | 1,778 |
Poland | 1,721 | 1,619 |
Portugal | 2,222 | 2,367 |
Romania | – | 2,146 |
Sweden | 1,927 | 1,830 |
Slovenia | 1,476 | 1,286 |
Slovakia | 1,766 | – |
Appendix 3
Correlation matrix social capital variables
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | 1 | |||||||||||
2 | 0.29 | 1 | ||||||||||
3 | 0.20 | 0.27 | 1 | |||||||||
4 | 0.19 | 0.25 | 0.37 | 1 | ||||||||
5 | −0.05 | −0.03 | −0.03 | −0.02 | 1 | |||||||
6 | −0.08 | −0.07 | −0.08 | −0.05 | −0.03 | 1 | ||||||
7 | −0.06 | −0.05 | −0.06 | −0.04 | −0.04 | −0.09 | 1 | |||||
8 | −0.01 | −0.01 | −0.01 | −0.02 | −0.06 | −0.13 | −0.15 | 1 | ||||
9 | 0.01 | 0.01 | 0.01 | 0.02 | −0.06 | −0.13 | −0.15 | −0.23 | 1 | |||
10 | 0.08 | 0.08 | 0.07 | 0.05 | −0.08 | −0.18 | −0.20 | −0.31 | −0.31 | 1 | ||
11 | 0.01 | −0.01 | 0.02 | 0.01 | −0.05 | −0.12 | −0.14 | −0.21 | −0.21 | −0.28 | 1 | |
12 | 0.03 | 0.03 | 0.02 | 0.01 | −0.01 | −0.02 | −0.01 | 0.00 | 0.00 | 0.02 | 0.02 | 1 |
13 | 0.05 | 0.05 | 0.02 | 0.00 | −0.02 | −0.03 | −0.03 | −0.02 | 0.00 | 0.03 | 0.03 | 0.28 |
14 | 0.07 | 0.06 | 0.04 | 0.03 | −0.02 | −0.05 | −0.04 | −0.02 | −0.01 | 0.04 | 0.05 | 0.26 |
15 | 0.03 | 0.01 | 0.01 | −0.04 | −0.02 | −0.03 | −0.03 | −0.01 | −0.02 | 0.03 | 0.05 | 0.19 |
16 | 0.10 | 0.10 | 0.06 | 0.07 | −0.05 | −0.08 | −0.05 | −0.02 | −0.01 | 0.07 | 0.06 | 0.14 |
17 | −0.04 | −0.03 | −0.06 | 0.02 | 0.01 | 0.04 | 0.04 | 0.01 | 0.02 | −0.05 | −0.03 | 0.02 |
18 | 0.10 | 0.07 | 0.02 | 0.07 | −0.01 | 0.01 | 0.04 | 0.03 | 0.03 | −0.02 | −0.08 | 0.05 |
19 | 0.15 | 0.14 | 0.10 | 0.05 | −0.04 | −0.08 | −0.05 | −0.01 | −0.01 | 0.08 | 0.04 | 0.24 |
20 | 0.15 | 0.13 | 0.13 | 0.10 | −0.04 | −0.05 | −0.03 | 0.00 | 0.01 | 0.05 | 0.01 | 0.03 |
21 | 0.35 | 0.20 | 0.17 | 0.15 | −0.06 | −0.09 | −0.05 | 0.01 | 0.02 | 0.07 | 0.00 | 0.01 |
22 | −0.12 | −0.07 | −0.05 | −0.06 | 0.02 | 0.01 | 0.02 | 0.01 | 0.01 | −0.03 | −0.01 | 0.00 |
23 | −0.12 | −0.09 | −0.05 | −0.07 | 0.03 | 0.01 | 0.01 | −0.01 | −0.01 | −0.03 | 0.03 | −0.01 |
13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | |
---|---|---|---|---|---|---|---|---|---|---|---|
1 | |||||||||||
2 | |||||||||||
3 | |||||||||||
4 | |||||||||||
5 | |||||||||||
6 | |||||||||||
7 | |||||||||||
8 | |||||||||||
9 | |||||||||||
10 | |||||||||||
11 | |||||||||||
12 | |||||||||||
13 | 1 | ||||||||||
14 | 0.18 | 1 | |||||||||
15 | 0.13 | 0.27 | 1 | ||||||||
16 | 0.18 | 0.13 | 0.08 | 1 | |||||||
17 | 0.03 | 0.00 | −0.04 | 0.10 | 1 | ||||||
18 | 0.08 | 0.07 | 0.02 | 0.04 | −0.05 | 1 | |||||
19 | 0.27 | 0.25 | 0.16 | 0.34 | 0.01 | 0.12 | 1 | ||||
20 | 0.05 | 0.03 | 0.02 | 0.07 | −0.04 | 0.03 | 0.09 | 1 | |||
21 | 0.02 | 0.04 | 0.02 | 0.08 | −0.05 | 0.06 | 0.10 | 0.12 | 1 | ||
22 | 0.01 | −0.01 | 0.00 | −0.01 | 0.02 | 0.00 | −0.02 | −0.26 | −0.08 | 1 | |
23 | −0.02 | 0.00 | 0.02 | −0.03 | 0.01 | −0.03 | −0.04 | −0.28 | −0.10 | 0.42 | 1 |
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Rodríguez-Pose, A., von Berlepsch, V. Social Capital and Individual Happiness in Europe. J Happiness Stud 15, 357–386 (2014). https://doi.org/10.1007/s10902-013-9426-y
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DOI: https://doi.org/10.1007/s10902-013-9426-y