Subjective Well-Being During the 2008 Economic Crisis: Identification of Mediating and Moderating Factors

Abstract

We examine the effects of the 2008 economic crisis on the reported subjective well-being (SWB) of nationally representative samples in 36 mainly European countries between 2002 and 2013. We study how SWB fluctuates along the business cycle, and how it is mediated by individual and country-level socioeconomic factors. Our key finding is that the economic crisis had a negative and S-shaped effect on SWB, implying diminishing marginal sensitivity at higher income losses and gains. During the economic downturn, roughly half of individual-level and macro-level determinants exhibit notable changes in significance and/or magnitude of the effect on SWB. This is taken as an indication of psychological adaptation and shifting reference frames. Five factors display an augmented effect on happiness and life satisfaction during the crisis (below-average income, the Gini index, attitude towards income equality, religiosity, and conscientiousness), while two determinants exhibit attenuated impact on the SWB measures (relationship status and unemployment rate).

This is a preview of subscription content, access via your institution.

Fig. 1

Source: Own calculations

Fig. 2

Source: Own calculations

Notes

  1. 1.

    Commuting has been found to have a strong negative impact on both measures of affect (Kahneman et al. 2004) and life evaluations (Frey and Stutzer 2008).

  2. 2.

    Some of the interviews in Round 6 were conducted in 2013. In the analysis, we use the actual year of the interview and the corresponding macro-level variables.

  3. 3.

    To gain more nuanced evidence, we have successively added the remaining controls to the specification with a standard set of sociodemographic individual controls and observed the corresponding changes in the recession dummy coefficient. When individual psychological traits and days of the week are added, the coefficient drops from −0.131*** (column 2 in Table 1) to −0.091***. Adding GDP per capita and unemployment rate reduces the coefficient further to −0.030**. The remaining macroeconomic variables bring it to 0.00398, the value reported in column 3 in Table 1. The fact that the recession dummy is strongly correlated with GDP per capita and the unemployment rate explains the abovementioned substantial drop in the regression coefficient.

  4. 4.

    Multivariate local smoothing was performed by the mrunning Stata module by Royston and Cox (2005) for lowess smoothing with multiple predictors.

  5. 5.

    Both specifications exclude recession dummy and most of the macro controls (except inflation, Gini coefficient and life expectancy) and include individual level controls, unemployment rate and country and year dummies.

References

  1. Akay, A., & Martinsson, P. (2009). Sundays Are Blue: Aren’t They? The Day-of-the-Week Effect on Subjective Well-Being and Socio-Economic Status. IZA Discussion Paper No. 4563.

  2. Alesina, A., Di Tella, R., & MacCulloch, R. (2004). Inequality and happiness: Are Europeans and Americans different? Journal of Public Economics, 88(9), 2009–2042.

    Article  Google Scholar 

  3. Argyle, M. (1999). Causes and Correlates of Happiness. In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-being: Foundations of Hedonic Psychology (pp. 353–374). New York: Russell Sage Foundation.

    Google Scholar 

  4. Baetschmann, G. (2014). Heterogeneity in the Relationship between Happiness and Age: Evidence from the German Socio-Economic Panel. German Economic Review, 15(3), 393–410.

    Article  Google Scholar 

  5. Balatsky, G., & Diener, E. (1993). Subjective well-being among Russian students. Social Indicators Research, 28(3), 225–243.

    Article  Google Scholar 

  6. Bartram, D. (2011). Economic migration and happiness: Comparing immigrants’ and natives’ happiness gains from income. Social Indicators Research, 103(1), 57–76.

    Article  Google Scholar 

  7. Becchetti, L., Castriota, S., & Giuntella, G. O. (2010). The effects of age and job protection on the welfare costs of inflation and unemployment. European Journal of Political Economy, 26(1), 137–146.

    Article  Google Scholar 

  8. Becchetti, L., & Pelloni, A. (2013). What are we learning from the life satisfaction literature? International Review of Economics, 60(2), 113–155.

    Article  Google Scholar 

  9. Beegle, K., Himelein, K., & Ravallion, M. (2012). Frame-of-reference bias in subjective welfare. Journal of Economic Behavior & Organization, 8(2), 556–570.

    Article  Google Scholar 

  10. Bell, N. F. D., & Blanchflower, D. G. (2010). UK unemployment in the Great Recession. National Institute Economic Review, 214(1), R3–R25.

    Article  Google Scholar 

  11. Berry, B. J. L., & Okulicz-Kozaryn, A. (2011). An Urban-Rural Happiness Gradient. Urban Geography, 32(6), 871–883.

    Google Scholar 

  12. Bjørnskov, C. (2008). Healthy and happy in Europe? On the association between happiness and life expectancy over time. Social Science and Medicine, 66(8), 1750–1759.

    Article  Google Scholar 

  13. Bjørnskov, C. (2010). How Comparable are the Gallup World Poll Life Satisfaction Data? Journal of Happiness Studies, 11(1), 41–60.

    Article  Google Scholar 

  14. Bjørnskov, C. (2014). Do Economic Reforms Alleviate Subjective Well-Being Losses of Economic Crises? Journal of Happiness Studies, 15(1), 163–182.

    Article  Google Scholar 

  15. Bjørnskov, C., Dreher, A., & Fischer, J. A. V. (2010). Formal institutions and subjective well-being: Revisiting the cross-country evidence. European Journal of Political Economy, 26(4), 412–430.

    Article  Google Scholar 

  16. Blanchflower, G. D., Bell, D. N. F., Montagnoli, A., & Moro, M. (2014). The Happiness Trade-Off between Unemployment and Inflation. Journal of Money, Credit and Banking, 46(2), 117–141.

    Article  Google Scholar 

  17. Blanchflower, G. D., & Oswald, A. J. (2011). International Happiness A New View on the Measure of Performance. Academy of Management Working paper Perspectives, 25(1), 6–22.

    Article  Google Scholar 

  18. Blinder, S. A. (1973). Wage Discrimination: Reduced Form and Structural Estimates. The Journal of Human Resources, 8(4), 436–455.

    Article  Google Scholar 

  19. Blinder, S. A. (2006). Offshoring: The next industrial revolution? Foreign Affairs, 85(2), 113–128.

    Article  Google Scholar 

  20. Blinder, S. A. (2009). How many U.S. jobs might be offshorable? World Economics, 10(2), 41–78.

    Google Scholar 

  21. Boarini, R., Comola, M., Smith, C., Manchin, R., & De Keulenaer, F. (2012). What makes for a better life?: The determinants of subjective well-being in OECD countriesEvidence from the Gallup World Poll. OECD Publishing No. 2012/3.

  22. Bollen, J., Mao, H., & Zeng, X. (2010). Twitter mood predicts the stock market. Journal of Conceptual science, 2(1), 1–8.

    Google Scholar 

  23. Borghesi, S., & Vercelli, A. (2012). Happiness and health: Two Paradoxes. Journal of Economic Surveys, 26(2), 203–233.

    Article  Google Scholar 

  24. Brickman, P., & Campbell, D. T. (1971). Hedonic relativism and planning the good society. In M. H. Appley (Ed.), Adaptation level theory: A symposium (pp. 287–302). New York: Academic Press.

    Google Scholar 

  25. Burns, W. J., Peters, E., & Slovic, P. (2012). Risk perception and the economic crisis: A longitudinal study of the trajectory of perceived risk. Risk Analysis, 32(4), 659–677.

    Article  Google Scholar 

  26. Charles, T. S., Reynolds, C. A., & Gatz, M. (2001). Age-Related Differences and Change in Positive and Negative Affect over 23 Years. Journal of Personality and Social Psychology, 80(1), 136–151.

    Article  Google Scholar 

  27. Chen, W. (2012). How Education Enhances Happiness: Comparison of Mediating Factors in Four East Asian Countries. Social Indicators Research, 106(1), 117–131.

    Article  Google Scholar 

  28. Clark, E. A. (2003). Unemployment as a Social Norm: Psychological Evidence from Panel Data. Journal of Labor Economics, 21(2), 289–322.

    Article  Google Scholar 

  29. Clark, E. A., Frijters, P., & Shields, M. A. (2008). Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles. Journal of economic Literature, 456(1), 95–144.

    Article  Google Scholar 

  30. Clark, E. A., & Senik, C. (2011). Is happiness different from flourishing? Cross-country evidence from the ESS. Revue d`économie politique, 121(1), 17–34.

    Article  Google Scholar 

  31. Clark, E. A., Westergaard-Nielsen, N., & Kristensen, N. (2009). Economic satisfaction and income rank in small neighbourhoods. Journal of the European Economic Association, 7(2,3), 519–527.

    Article  Google Scholar 

  32. Costa, T. P., & McCrae, R. R. (1992). Revised NEO Personality Inventory (NEO PI-R) and NEO Five-Factor Inventory Professional Manual. Odessa, FL: Psychological Assessment Resources.

    Google Scholar 

  33. Costa, T. P., Zonderman, A. B., McCrae, R. R., Cornoni-Huntley, J., Locke, B. Z., & Barbano, H. E. (1987). Longitudinal Analyses of Psychosocial Well-Being in a National Sample: Stability of Mean Levels. Journal of Gerontology, 42(1), 50–55.

    Article  Google Scholar 

  34. Csikszentmihaly, M., Patton, J. D., & Lucas, M. (1997). Le bonheur, l’expe´rience optimale et les valeurs spirituelles: Une e´tude empirique aupre`s d’adolescents (Happiness, the optimal experience and spiritual values: An empirical study of adolescents). Revue Que´be´coise de Psychologie, 18(2), 167–190.

    Google Scholar 

  35. Csikszentmihalyi, M., & Hunter, J. (2003). Happiness and Everyday Life: The Uses of Experience Sampling. Journal of Happiness Studies, 4(2), 185–199.

    Article  Google Scholar 

  36. Cummins, A. R., Eckersley, R., Pallant, J., Van Vugt, J., & Misajon, R. (2003). Developing a national index of subjective wellbeing: The Australian Unity Wellbeing Index. Social Indicators Research, 64(2), 159–190.

    Article  Google Scholar 

  37. Cummins, A. R., & Lau, A. L. D. (2011). Well-being across cultures: Issues of measurement and the interpretation of data. In K. D. Keith (Ed.), Cross-Cultural Psychology: A Contemporary Reader (pp. 365–379). New York: Wiley/Blackwell.

    Google Scholar 

  38. Cunado, J., & de Garcia, F. P. (2010). Education and happiness and Spain. Investigaciones de Economía de la Educación, 5(1), 206–221.

    Google Scholar 

  39. Darity, W., & Goldsmith, A. H. (1996). Social psychology, unemployment and macroeconomics. The Journal of Economic Perspectives, 10(1), 121–140.

    Article  Google Scholar 

  40. Deaton, A. (2008). Income, Health and Well-Being Around the World: Evidence From the Gallup World Poll. Journal of Economic Perspectives, 22(2), 53–72.

    Article  Google Scholar 

  41. Deaton, A. (2012). The Financial Crisis and the Well-Being of Americans. Oxford Economic Papers, 64(1), 1–26.

    Article  Google Scholar 

  42. Deci, L. E., & Ryan, R. M. (2006). Hedonia, Eudaimonia, and Well-being: An introduction. Journal of Happiness Studies, 9(1), 1–11.

    Article  Google Scholar 

  43. Di Tella, R., & MacCulloch, R. (2006). Some uses of happiness data in economics. Journal of Economic Perspectives, 20(1), 25–46.

    Article  Google Scholar 

  44. Di Tella, R., MacCulloch, R., & Oswald, A. J. (2001). Preferences over inflation and unemployment: Evidence from surveys of happiness. American Economic Review, 91(1), 335–341.

    Article  Google Scholar 

  45. Di Tella, R., MacCulloch, R., & Oswald, A. J. (2003). The macroeconomics of happiness. Review of Economics and Statistics, 85(4), 809–827.

    Article  Google Scholar 

  46. Diener, E. (1984). Subjective Well-Being. Psychological Bulletin, 95(3), 542–575.

    Article  Google Scholar 

  47. Diener, E. (2006). Guidelines for National Indicators of Subjective Well-Being and Ill-Being. Applied Research in Quality of Life, 1(2), 151–157.

    Article  Google Scholar 

  48. Diener, E., & Biswas-Diener, R. (2002). Will money increase subjective well-being? Social Indicator Research, 57(2), 119–169.

    Article  Google Scholar 

  49. Diener, E., Kahneman, D., Tov, W., & Arora, R. (2010). Income’s Association with Judgments of Life Versus Feelings. In E. Diener, J. F. Helliwell, & D. Kahneman (Eds.), International Differences in Well-Being (pp. 3–15). New York: Oxford University Press.

    Google Scholar 

  50. Diener, E., & Lucas, R. E. (1999). Personality and subjective well-being. In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-being: Foundations of Hedonic Psychology (pp. 213–229). New York: Russell Sage Foundation.

    Google Scholar 

  51. Diener, E., Lucas, R. E., & Scollon, C. N. (2006). Beyond the hedonic treadmill: Revising the adaptation theory of well-being. American Psychologist, 61(4), 305–314.

    Article  Google Scholar 

  52. Diener, E., Oishi, S., & Lucas, R. E. (2003). Personality, culture, and subjective well-being: Emotional and cognitive evaluations of life. Annual Rewiev of Psychology, 54(1), 403–425.

    Article  Google Scholar 

  53. Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective Well-Being: Three Decades of Progress. Psychological Bulletin, 125(2), 276–302.

    Article  Google Scholar 

  54. Diener, E., Wirtz, D., Biswas-Diener, R., Tov, W., Kim-Prieto, C., Choi, D., & Oishi, S. (2009). New Measures of Well-Being. The Netherlands: Springer. The collected works of Ed Diener.

  55. Dolan, P., & Metcalfe, R. (2011). Comparing measures of subjective well-being and views about the role they should play in policy. UK Office for National Statistics Paper.

  56. Dolan, P., Peasgood, T., & White, M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of Economic Psychology, 29(1), 94–122.

    Article  Google Scholar 

  57. Dunn, W. E., Aknin, L. B., & Norton, M. I. (2008). Spending money on others promotes happiness. Science, 319(5870), 1687–1688.

    Article  Google Scholar 

  58. Easterlin, R. A. (1974). Does Economic Growth Improve the Human Lot? Some empirical evidence. In R. David & M. Reder (Eds.), Nations and Households in Economic Growth: Essays in Honor of Moses Abramovitz (pp. 89–125). New York: Academic Press.

    Google Scholar 

  59. Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all? Journal of Economic Behavior & Organization, 27(1), 35–47.

    Article  Google Scholar 

  60. Easterlin, R. A. (2003a). Explaining Happiness. Proceedings of the National Academy of Sciences, 100(19), 11176–11183.

    Article  Google Scholar 

  61. Easterlin, R. A. (2003b). Happiness of Women and Men and Later Life: Nature, Determinants and Prospects. In M. J. Sirgy, D. Rahtz, & A. C. Samli (Eds.), Advances in Quality-of-Life Theory and Research (pp. 13–26). Dordrecht, The Netherlands: Kluwer Academic Publishers.

    Google Scholar 

  62. Evans, J. (2011). Findings from the National Well-Being Debate. UK Office for National Statistics Paper.

  63. Eysenck, H. J., & Eysenck, S. B. G. (1964). Manual of the Eysenck Personality Inventory. San Diego: Educational and Industrial Testing Service.

    Google Scholar 

  64. Eysenck, H. J., & Eysenck, S. B. G. (1975). Manual for the Eysenck Personality Questionnaire (Junior and Adult). London: Hodder & Stoughton.

    Google Scholar 

  65. Fereidouni, G. H., Najdi, Y., & Amiri, R. (2013). Do governance factors matter for happiness in the MENA region? International Journal Of Social Economics, 40(12), 1028–1040.

    Article  Google Scholar 

  66. Ferrer-i-Carbonell, A., & Ramos, X. (2014). Inequality and happiness. Journal of Economic Surveys, 28(5), 1016–1027.

    Article  Google Scholar 

  67. Ferriss, L. A. (2002). Religion and the quality of life. Journal of Happiness Studies, 3(3), 199–215.

    Article  Google Scholar 

  68. Frey, S. B. (2008). Happiness: A revolution in economics. Cambridge: MIT Press.

    Google Scholar 

  69. Frey, S. B., & Stutzer, A. (2002). What can economists learn from happiness research? Journal of Economic Literature, 40(2), 402–435.

    Article  Google Scholar 

  70. Frey, S. B., & Stutzer, A. (2005). Happiness Research: State and Prospects. Review of Social Economy, 63(2), 207–228.

    Article  Google Scholar 

  71. Frey, S. B., & Stutzer, A. (2008). Stress that Doesn’t Pay: The Commuting Paradox. The Scandinavian Journal of Economics, 110(2), 339–366.

    Article  Google Scholar 

  72. Friedman, M. M. (1993). Social support sources and psychological well-being in older women with heart disease. Research in Nursing & Health, 16(6), 405–413.

    Article  Google Scholar 

  73. Gandelman, N., & Hernández-Murillo, R. (2009). The Impact of Inflation and Unemployment on Subjective Personal and Country Evaluations. Federal Reserve Bank of St. Louis Review, 91(3), 107–126.

    Google Scholar 

  74. Graham, C. (2008). Happiness and Health: Lessons and Questions for Public Policy. Health Affairs, 27(1), 72–87.

    Article  Google Scholar 

  75. Graham, C., Chattopadhyay, S., & Picon, M. (2010). Adapting to Adversity: Happiness and the 2009 Economic Crisis and the United States. Social research, 77(2), 715–748.

    Google Scholar 

  76. Graham, C., & Felton, A. (2006). Inequality and happiness: insights from Latin America. The Journal of Economic Inequality, 4(1), 107–122.

    Article  Google Scholar 

  77. Graham, C., Higuera, L., & Lora, E. (2011). Which health conditions cause the most unhappiness? Health Economics, 20(12), 1431–1447.

    Article  Google Scholar 

  78. Green, F. (2011). Unpacking the misery multiplier: How employability modifies the impacts of unemployment and job insecurity on life satisfaction and mental health. Journal of Health Economics, 30(2), 265–276.

    Article  Google Scholar 

  79. Greve, B. (2012). The impact of the financial crisis on happiness and affluent European countries. Journal of Comparative Social Welfare, 28(3), 183–193.

    Article  Google Scholar 

  80. Gudmundsdottir, G. D. (2013). The Impact of the Economic Crisis on Happiness. Social Indicators Research, 110(3), 1083–1101.

    Article  Google Scholar 

  81. Gundelach, P., & Kreiner, S. (2004). Happiness and life satisfaction in advanced European countries. Cross-cultural research, 38(4), 359–386.

    Article  Google Scholar 

  82. Habibov, N., & Afandi, E. (2015). Pre-and Post-crisis Life-Satisfaction and Social Trust in Transitional Countries: An Initial Assessment. Social Indicators Research, 121(2), 503–524.

    Article  Google Scholar 

  83. Hammond, C. (2004). Impacts of Lifelong Learning Upon Emotional Resilience, Psychological and Mental Health: Fieldwork Evidence. Oxford Review of Education, 30(4), 551–568.

    Article  Google Scholar 

  84. Hayes, N., & Joseph, S. (2003). Big 5 correlates of three measures of subjective well-being. Personality and Individual Differences, 34(4), 723–727.

    Article  Google Scholar 

  85. Headey, B., Muffels, R., & Wooden, M. (2008). Money does not buy happiness: Or does it? A reassessment based on the combined effects of wealth, income and consumption. Social Indicator Research, 87(1), 65–82.

    Article  Google Scholar 

  86. Hedengren, D., & Stratmann, T. (2012). The Dog that Didn’t Bark: What Item Nonresponse Shows about Cognitive and Non-Cognitive Ability. Social Science Research Network. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2194373. Accessed 22 August 2015.

  87. Helliwell, F. J., & Huang, H. (2008). How’s your government? International evidence linking good government and well-being. British Journal of Political Science, 38(4), 595–619.

    Article  Google Scholar 

  88. Helliwell, F. J., Huang, H., & Wang, S. (2014). Social capital and well-being in times of crisis. Journal of Happiness Studies, 15(1), 145–162.

    Article  Google Scholar 

  89. Helliwell, F. J., Layard, R., & Sachs, J. D. (2013). World Happiness Report 2013. New York: UN Sustainable Development Solutions Network.

    Google Scholar 

  90. Helliwell, F. J., & Putnam, R. D. (2004). The Social Context of Well-Being. Philosophical Transactions of the Royal Society of London series biological sciences, 359(1449), 1435–1446.

    Article  Google Scholar 

  91. Helliwell, F. J., & Wang, S. (2011). Trust and Well-being. International Journal of Wellbeing, 1(1), 42–78.

    Article  Google Scholar 

  92. Helliwell, F. J., & Wang, S. (2014). Weekends and Subjective Well-Being. Social Indicators Research, 116(2), 389–407.

    Article  Google Scholar 

  93. Hessami, Z. (2010). The Size and Composition of Government Spending in Europe and Its Impact on Well-Being. Kyklos, 63(3), 346–382.

    Article  Google Scholar 

  94. Hitt, C., Trivitt, J., & Cheng, A. (2016). When you say nothing at all: The predictive power of student effort on surveys. Economics of Education Review, 52(1), 105–119.

    Article  Google Scholar 

  95. Huppert, A. F., Marks, N., Clark, A., Siegrist, J., Stutzer, A., Vitterso, J., et al. (2009). Measuring Well-being Across Europe: Description of the ESS Well-being Module and Preliminary Findings. Social Indicators Research, 91(3), 301–315.

    Article  Google Scholar 

  96. Huppert, A. F., & So, T. T. C. (2013). Flourishing Across Europe: Application of a New Conceptual Framework for Defining Well-Being. Social Indicators Research, 110(3), 837–861.

    Article  Google Scholar 

  97. ISG. (2015). The Global ISG Outsourcing Index: Fourth Quarter and Full-Year 2014. Stamford (CT): Information Services Group.

    Google Scholar 

  98. Johns, H., & Ormerod, P. (2007). Happiness, Economics and Public Policy. London: The institute of Economic Affairs.

    Google Scholar 

  99. Kahneman, D. (2003). A perspective on judgment and choice: Mapping bounded rationality. American Psychologist, 58(9), 697–720.

    Article  Google Scholar 

  100. Kahneman, D., & Deaton, A. (2010). High Income Improves Evaluation of Life But Not Emotional Well-Being. Proceedings of the National Academy of Sciences, 107(38), 16489–16493.

    Article  Google Scholar 

  101. Kahneman, D., Diener, E., & Schwarz, N. (1999). Well-being: The Foundations of Hedonic Psychology. New York: Russel Sage Foundation.

    Google Scholar 

  102. Kahneman, D., & Krueger, A. B. (2006). Developments in the Measurement of Subjective Well-Being. Journal of Economic Perspectives, 20(1), 19–20.

    Google Scholar 

  103. Kahneman, D., Krueger, A. B., Schkade, D. A., Schwarz, N., & Stone, A. A. (2004). A Survey Method for Characterizing Daily Life Experience: The Day Reconstruction Method. Science, 306(5702), 1776–1780.

    Article  Google Scholar 

  104. Kahneman, D., & Thaler, R. H. (2006). Utility Maximization and Experienced Utility. Journal Of Economic Perspectives, 20(1), 221–234.

    Article  Google Scholar 

  105. Kamp, D., Claire, M., & Amato, P. R. (2005). Consequences of relationship status and quality for subjective well-being. Journal of Social and Personal Relationships, 22(5), 607–627.

    Article  Google Scholar 

  106. Kavetsos, G., Dimitriadou, M., & Dolan, P. (2014). Measuring happiness: Context matters. Applied Economics Letters, 21(5), 308–311.

    Article  Google Scholar 

  107. Keyes, L. C., Shmotkin, D., & Ryff, C. D. (2002). Optimizing well-being: the empirical encounter of two traditions. Journal of Personality and Social Psychology, 82(6), 1007–1022.

    Article  Google Scholar 

  108. Kim, H. K., & McKenry, P. C. (2002). The relationship between marriage and psychological well-being. Journal of Family Issues, 23(8), 885–991.

    Article  Google Scholar 

  109. Koenig, G. H., King, D., & Carson, V. B. (2001). Handbook of Religion and Health. Oxford: University Press.

    Google Scholar 

  110. Kotakorpi, K., & Laamanen, J. P. (2010). Welfare State and Life Satisfaction: Evidence from Public Health Care. Economica, 77(307), 565–583.

    Google Scholar 

  111. Koydemir, S. (2013). Acculturation and subjective well-being: the case of Turkish ethnic youth in Germany. Journal of Youth Studies, 16(4), 460–473.

    Article  Google Scholar 

  112. Kroll, C. (2015). Global Development and Happiness: How Can Data on Subjective Well-Being Inform Development Theory and Practice? Oxford Development Studies, 43(3), 281–309.

    Article  Google Scholar 

  113. Krueger, B. A., & Schkade, D. A. (2008). The reliability of subjective well-being measures. Journal of Public Economics, 92(8), 1833–1845.

    Article  Google Scholar 

  114. Kucel, A., & Vilalta-Bufi, M. (2013). Job Satisfaction of University Graduates. Revista de Economia Aplicada, 21(1), 29–55.

    Google Scholar 

  115. Lane, E. R. (2000). The loss of happiness in market democracies. New Haven and London: Yale University Press.

    Google Scholar 

  116. Lawless, M. N., & Lucas, R. E. (2011). Predictors of regional well-being: a county level analysis. Social Indicators Research, 101(3), 341–357.

    Article  Google Scholar 

  117. Lin, C., Chen, C., & Liu, T. (2015). Do stock prices drive people crazy? Health Policy & Planning, 30(2), 206–214.

    Article  Google Scholar 

  118. Lucas, E. R., Clark, A. E., Georgellis, Y., & Diener, E. (2004). Unemployment alters the set point for life satisfaction. Psychological Science, 15(1), 8–13.

    Article  Google Scholar 

  119. Lucas, E. R., & Diener, E. (2008). Personality and subjective well-being. In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-being: Foundations of Hedonic Psychology (pp. 213–230). New York: Russell Sage Foundation.

    Google Scholar 

  120. Luechinger, S., Meier, S., & Stutzer, A. (2010). Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap Between the Public and the Private Sector. Journal of Human Resources, 45(4), 998–1045.

    Article  Google Scholar 

  121. Luhmann, M., Hofmann, W., Eid, M., & Lucas, R. E. (2012). Subjective well-being and adaptation to life events: A meta-analysis. Journal of Personality and Social Psychology, 102(3), 592–615.

    Article  Google Scholar 

  122. Ma, Y. Z., & Zhang, Y. (2014). Resolution of the Happiness-Income Paradox. Social Indicators Research, 119(2), 705–721.

    Article  Google Scholar 

  123. Maenniga, W., Steenbeck, M., & Wilhelm, M. (2014). Rhythms and Cycles in Happiness. Applied Economics, 46(1), 70–78.

    Article  Google Scholar 

  124. McCall, L. (2013). The Undeserving rich: American beliefs about inequality, opportunity, and redistribution (p. 2013). Cambridge: Cambridge University Press.

    Google Scholar 

  125. McCloskey, N. D. (2012). Happyism: The creepy new economics of pleasure. The New Republic. http://www.newrepublic.com/article/politics/magazine/ 103952/happyism-deirdre-mccloskey-economics-happiness. Accessed 8 June 2015.

  126. McKee-Ryan, F., Song, Z., Wanberg, C. R., & Kinicki, A. J. (2005). Psychological and physical well-being during unemployment: A meta-analytic study. Journal of Applied Psychology, 90(1), 53–76.

    Article  Google Scholar 

  127. Minkov, M. (2009). Predictors of differences in subjective well-being across 97 nations. Cross-Cultural Research, 43(2), 152–179.

    Article  Google Scholar 

  128. Morrison, P. S. (2011). Local Expressions of Subjective Well-being: The New Zealand Experience. Regional Studies, 45(8), 1039–1058.

    Article  Google Scholar 

  129. Mroczek, D. K., & Kolarz, C. M. (1998). The effect of age on positive and negative affect: A developmental perspective on happiness. Journal of Personality and Social Psychology, 75(5), 1333–1349.

    Article  Google Scholar 

  130. Nagengast, A. J. & Stehrer, R. (2015). The great collapse in value added trade. European Central Bank Working Paper Series 1833, ECB.

  131. Oaxaca, R. (1973). Male-Female Wage Differentials in Urban Labor Markets. International Economic Review, 14(3), 693–709.

    Article  Google Scholar 

  132. OECD. (2013). OECD Guidelines on Measuring Subjective Well-being. Paris: Organisation for Economic Co-operation and Development.

    Google Scholar 

  133. Oswald, J. A. (1997). Happiness and economic performance. The Economic Journal, 107(445), 1815–1831.

    Article  Google Scholar 

  134. Ott, C. J. (2010). Good governance and happiness in nations: Technical quality precedes democracy and quality beats size. Journal of Happiness Studies, 11(3), 353–368.

    Article  Google Scholar 

  135. Panas, E. E. (2013). Homeorhesis and Indication of Association between Different Types of Capital on Life Satisfaction: The Case of Greek under Crisis. Social Indicators Research, 110(1), 171–186.

    Article  Google Scholar 

  136. Papavlassopulos, N., & Keppler, D. (2011). Life Expectancy as an Objective Factor of a Subjective Well-Being. Social Indicators Research, 104(3), 475–505.

    Article  Google Scholar 

  137. Paul, I. K., & Moser, K. (2009). Unemployment impairs mental health: Meta-analyses. Journal of Vocational Behavior, 74(3), 264–282.

    Article  Google Scholar 

  138. Peiró, A. (2006). Happiness, satisfaction and socioeconomic conditions: Some international evidence. The Journal of Socio-Economics, 35(2), 348–365.

    Article  Google Scholar 

  139. Phinney, S. J. (1990). Ethnic identity in adolescents and adults: Review of research. Psychological Bulletin, 108(3), 499–514.

    Article  Google Scholar 

  140. Phinney, S. J., Horenczyk, G., Liebkind, K., & Vedder, P. (2001). Ethnic identity, immigration, and well-being: An interactional perspective. Journal of social issues, 57(3), 493–510.

    Article  Google Scholar 

  141. Rehdanz, K., & Maddison, D. (2005). Climate and happiness. Ecological Economics, 52(1), 111–125.

    Article  Google Scholar 

  142. Reimers, C. W. (1983). Labor Market Discrimination Against Hispanic and Black Men. The Review of Economics and Statistics, 65(4), 570–579.

    Article  Google Scholar 

  143. Richmond, L., Filson, G. C., Paine, C., Pfeffer, W. C., & Taylor, J. R. (2000). Non-far, rural Ontario residents perceived quality of life. Social Indicator Research, 50(2), 159–186.

    Article  Google Scholar 

  144. Riis, J., Loewenstein, G., Baron, J., Jepson, C., Fagerlin, A., & Ubel, P. A. (2005). Ignorance of hedonic adaptation to hemodialysis: A study using ecological momentary assessment. Journal of Experimental Psychology: General, 134(1), 3–9.

    Article  Google Scholar 

  145. Robinson, D. M., Solberg, E. C., Vargas, P. T., & Tamir, M. (2003). Trait as Default: Extraversion, Subjective Well-Being, and the Distinction Between Neutral and Positive Events. Journal of Personality and Social Psychology, 85(3), 517–527.

    Article  Google Scholar 

  146. Rodgers, W. (1982). Trends in Reported Happiness within Demographically Defined Subgroups, 1957–78. Social Forces, 60(3), 826–842.

    Article  Google Scholar 

  147. Rodríguez-Pose, A., & Maslauskaite, K. (2012). Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe. Cambridge Journal Of Regions, Economy and Society, 5(1), 77–96.

    Article  Google Scholar 

  148. Rothstein, B., & Uslaner, E. M. (2005). All for all: Equality, corruption, and social trust. World Politics, 5(1), 41–72.

    Article  Google Scholar 

  149. Røysamb, E., Tambs, K., Reichborn-Kjennerud, T., Neale, M. C., & Harris, J. R. (2003). Happiness and Health: Environmental and Genetic Contributions to the Relationship Between Subjective Well-Being, Perceived Health, and Somatic Illness. Journal of Personality and Social Psychology, 85(6), 1136–1146.

    Article  Google Scholar 

  150. Royston, P., & Cox, N. J. (2005). A multivariable scatterplot smoother. Stata Journal, 5(3), 405–412.

    Google Scholar 

  151. Ruprah, J. I., & Luengas, P. (2011). Monetary policy and happiness: Preferences over inflation and unemployment in Latin America. The Journal of Socio-Economics, 40(1), 59–66.

    Article  Google Scholar 

  152. Ryan, M. R., Bernstein, J. H., & Kirk, B. W. (2010). Weekends, work, and well-being: Psychological need satisfactions and day of the week effects on mood, vitality, and physical symptoms. Journal of Social and Clinical Psychology, 29(1), 95–122.

    Article  Google Scholar 

  153. Sacks, D., Stevenson, B., & Wolfers, J. (2011). Subjective Well-Being, Income, Economic Development, and Growth. In C. Sepúlveda, A. Harrison, & J. Y. Lin (Eds.), Development Challenges in a Postcrisis World (pp. 283–316). Washington DC: World Bank.

    Google Scholar 

  154. Sen, K. A. (2002). Health: perception versus observation: self-reported morbidity has severe limitations and can be extremely misleading. BMJ. British Medical Journal, 324(7342), 860–861.

    Article  Google Scholar 

  155. Senik, C. (2014). The French unhappiness puzzle: The cultural dimension of happiness. Journal of Economic Behavior & Organization, 106(11), 379–401.

    Article  Google Scholar 

  156. Shiller, J. R. (1997). Why Do People Dislike Inflation? In C. D. Romer & D. H. Romer (Eds.), Reducing Inflation: Motivation and Strategy (pp. 13–65). Chicago: University of Chicago Press.

    Google Scholar 

  157. Silla, I., De Cuyper, N., Gracia, F. J., Peiró, J. M., & De Witte, H. (2009). Job Insecurity and Well-Being: Moderation by Employability. Journal of Happiness Studies, 10(6), 739–751.

    Article  Google Scholar 

  158. Smyth, R., & Qian, X. (2008). Inequality and happiness in urban China. Economics Bulletin, 4(23), 1–10.

    Google Scholar 

  159. Snoep, L. (2008). Religiousness and happiness and three nations: a research note. Journal of Happiness Studies, 9(1), 207–211.

    Article  Google Scholar 

  160. Stack, S., & Eshleman, R. J. (1998). Marital Status and Happiness: A 17-Nation Study. Journal of Marriage and the Family, 60(2), 527–536.

    Article  Google Scholar 

  161. Stavrova, O., Fetchenhauer, D., & Schlösser, T. (2013). Why are religious people happier? The effect of the social norm of religiosity across countries. Social Science Research, 42(1), 90–105.

    Article  Google Scholar 

  162. Steel, P., Schmidt, J., & Shultz, J. (2008). Refining the relationship between personality and subjective wellbeing. Psychological Bulletin, 134(1), 138–161.

    Article  Google Scholar 

  163. Stevenson, B., & Wolfers, J. (2008). Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox. Brookings Papers on Economic Activity, 39(1), 1–102.

    Article  Google Scholar 

  164. Stevenson, B., & Wolfers, J. (2009). The paradox of declining Female Happiness. American Economic Journal: Economic Policy, 1(2), 190–225.

    Google Scholar 

  165. Stone, A. A., Schwartz, J. E., Broderick, J. E., & Deaton, A. (2010). A snapshot of the age distribution of psychological well-being in the United States. Proceedings of the National Academy of Sciences, 107(22), 9985–9990.

    Article  Google Scholar 

  166. Suls, J., & Martin, R. (2005). The Daily Life of the Garden-Variety Neurotic: Reactivity, Stressor Exposure, Mood Spillover, and Maladaptive Coping. Journal of Personality, 73(6), 1485–1510.

    Article  Google Scholar 

  167. Swinyard, R. W., Kau, A., & Phua, H. (2001). Happiness, materialism, and religious experience in the US and Singapore. Journal of Happiness Studies, 2(1), 13–32.

    Article  Google Scholar 

  168. Tavits, M. (2008). Representation, Corruption, and Subjective Well-Being. Comparative Political Studies, 41(12), 1607–1630.

    Article  Google Scholar 

  169. Tay, L., Herian, M. N., & Diener, E. (2014). Detrimental effects of corruption and subjective well-being: Whether, how, and when. Social Psychological and Personality Science, 5(1), 1–35.

    Google Scholar 

  170. Taylor, P. M. (2006). Tell Me Why I don’t Like Mondays: Investigating Day of the Week Effects on Job Satisfaction and Psychological Well-Being. Journal of the Royal Statistical Society Series A (Statistics and Society), 169(1), 127–142.

    Article  Google Scholar 

  171. Tkach, C., & Lyubomirsky, S. (2006). How do people pursue happiness?: Relating personality, happiness-increasing strategies, and well-being. Journal of Happiness Studies, 7(2), 183–225.

    Article  Google Scholar 

  172. Ubel, A. P., Jankovic, A., Smith, D., Langa, K. M., & Fagerlin, A. (2005). What is perfect health to an 85-year-old?: Evidence for scale recalibration in subjective health ratings. Medical Care, 43(10), 1054–1057.

    Article  Google Scholar 

  173. Van Laningham, J., Johnson, D. R., & Amato, P. (2001). Marital Happiness, Marital Duration, and teh U-shaped Curve: Evidence from a Five-Wave Panel Study. Social Forces, 79(4), 1313–1341.

    Article  Google Scholar 

  174. Vanassche, S., Swicegood, G., & Matthijs, K. (2013). Marriage and children as a key to happiness? Cross-national differences in the effects of marital status and children on well-being. Journal of Happiness Studies, 14(2), 501–524.

    Article  Google Scholar 

  175. Veenhoven, R. (1991). Questions on happiness: Classical topic, modern answers, blind spots. In M. Argyle, N. Schwarz, & F. Strack (Eds.), Subjective well-being: An interdisciplinary perspective (pp. 7–26). Oxford: Pergamon.

    Google Scholar 

  176. Veenhoven, R. (2005). Inequality of happiness in nations. Journal of Happiness Studies, 6(4), 351–355.

    Article  Google Scholar 

  177. Veenhoven, R. (2008). Measures of Gross National Happiness. In Statistics, Knowledge and Policy 2007: Measuring and Fostering the Progress of Societies (pp. 231–253). Paris: OECD.

  178. Veenhoven, R. (2009). The International Scale Interval Study: Improving the Comparability of Responses to Survey Questions about Happiness. In V. Moller & D. Huschka (Eds.), Quality of life and the millennium challenge: Advances in quality-of-life studies, theory and research (Vol. 35, pp. 45–58). Springer: Social Indicators Research Series.

    Google Scholar 

  179. Veenhoven, R. (2010). Greater happiness for a greater number. Journal of Happiness Studies, 11(5), 605–629.

    Article  Google Scholar 

  180. Verbakel, E. (2012). Subjective Well-Being by Partnership Status and Its Dependence on the Normative Climate. European Journal of Population, 28(2), 205–232.

    Article  Google Scholar 

  181. Verkuyten, M., & Kwa, G. A. (1994). Ethnic self-Identification and Psychological Well-Being among Minority Youth and the Netherlands. International Journal of Adolescence and Youth, 5(1–2), 19–34.

    Article  Google Scholar 

  182. Vittersø, J., Biswas-Diener, R., & Diener, E. (2005). The divergent meanings of life satisfation: Itemresponse modeling of the satisfaction with life scale and Greenland and Norway. Social Indicators Research, 74(2), 327–348.

    Article  Google Scholar 

  183. Waite, L. J., & Lehrer, E. L. (2003). The benefits from marriage and religion in the United States: A comparative analysis. Population and Development Review, 29(2), 255–275.

    Article  Google Scholar 

  184. Warr, P. (2007). Work, Happiness, and Unhappiness. New York: Psychology Press.

    Google Scholar 

  185. Watson, L. D., Clark, L. A., & Tellegen, A. (1988). Development and Validation of Brief Measures of Positive and Negative Affect: The PANAS Scales. Journal of Personality and Social Psychology, 54(6), 1063–1070.

    Article  Google Scholar 

  186. Weiss, A., Bates, T. C., & Luciano, M. (2008). Happiness is a personal(ity) thing: The genetics of personality and well-being and a representative sample. Psychological Science, 19(3), 205–210.

    Article  Google Scholar 

  187. Wilson, T. D., & Gilbert, D. T. (2008). Explaining Away: A Model of Affective Adaptation. Perspectives On Psychological Science, 3(5), 370–386.

    Article  Google Scholar 

  188. Winkelmann, L., & Winkelmann, R. (1998). Why Are the Unemployed So Unhappy? Evidence from Panel Data? Economica, 65(257), 1–15.

    Article  Google Scholar 

  189. Winkelmann, L., & Winkelmann, R. (2008). Personality, work, and satisfaction: evidence from the German Socio-Economic Panel. The Journal of Positive Psychology, 3(4), 266–275.

    Article  Google Scholar 

  190. Wolfers, J. (2003). Is Business Cycle Volatility Costly? Evidence From Surveys of Subjective Wellbeing. International Finance, 6(1), 1–26.

    Article  Google Scholar 

  191. Wooldridge, M. J. (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge (MA) and London: The MIT Press.

    Google Scholar 

  192. Yang, Y. (2008). Social inequalities in happiness in the United States, 1972–2004: An age-period-cohort analysis. American Sociological Review, 73(2), 204–226.

    Article  Google Scholar 

  193. Yuen, T. W., & Chu, W. W. (2015). Happiness in ASEAN member states. International journal of happiness and development, 2(1), 69–83.

    Article  Google Scholar 

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Anže Burger.

Appendix

Appendix

See Table 5.

Table 5 Summary statistics and sources of data.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Gonza, G., Burger, A. Subjective Well-Being During the 2008 Economic Crisis: Identification of Mediating and Moderating Factors. J Happiness Stud 18, 1763–1797 (2017). https://doi.org/10.1007/s10902-016-9797-y

Download citation

Keywords

  • Subjective well-being
  • Happiness
  • Life satisfaction
  • Economic crisis
  • Hedonic adaptation