This paper studies the effects of objective macroeconomic indicators on measures of subjective well-being. This issue is central to the economics of happiness as a modern academic research discipline. The article provides an econometric approach to identifying the impact of changes in macroeconomic indicators on the reported level of happiness. We used models on panel data for 163 countries for the period from 2005 to 2019. The results of modeling showed that GDP per capita has a significant positive effect while unemployment and inflation, a significant negative effect on happiness. Our quantitative results show that unemployment depresses the reported level of happiness more than inflation does. Our research complements a number of macroeconomic studies in the field of public and subjective well-being: it focuses on links between the reported level of happiness and GDP per capita and determines social and economic costs of unemployment and inflation. These studies are of particular importance in the context of digitalization of the economy and the negative consequences of the COVID-19 pandemic.
The article examines the influence of economic factors on life satisfaction in Russia. To conduct this study, we took RLMSHSE data from 1994 to 2019. We applied the panel data ordered logit model on the samples of men and women. It has been confirmed that the level of life satisfaction is the higher, the better the financial situation of an individual in absolute and relative terms. Maintaining a balance in the distribution of time between work and leisure also has a significantly positive effect on the level of life satisfaction. However, the impact of objective economic factors on life satisfaction in Russia is mediated by their subjective perception, which plays a decisive role. Since when it includes in the model, the objective parameters become insignificant. The results are consistent with similar works conducted on other countries’ data and spatial data. They deepen the understanding of the impact of the economic component on the subjective wellbeing of Russians. The conclusion about the significant influence of the subjective perception of economic reality on happiness in Russia is of practical importance for the guidelines of economic and social policy.
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