Happiness in Eastern Europe

Bernd Hayo

Philipps-University Marburg and ZEI, University of Bonn

Abstract

This paper analyses the determinants of happiness in seven Eastern European transition
countries during the early phase of economic transition. The analysis of representative survey
data in an ordered logit model shows that those core socio-demographic and economic
variables known to be relevant from studies on the US and Western European countries have
a similar impact on happiness in Eastern Europe. In addition, rural dwellers and church goers
experience greater life-satisfaction. Aggregate unemployment can explain more of the cross-
country variation in happiness than income per capita.

JEL: D60, I31, P2

Keywords : happiness, well-being, transition countries, Eastern Europe

Department of Economics (FB 02)

Philipps-University Marburg

D-35032 Marburg

Germany

Tel.: ++49(0)6421-2823091

Fax: ++49(0)6421-2823193

Email: [email protected]

Thanks to Volker Clausen, Bob Cummins, and participants of the Quality of Life Conference
in Frankfurt in July 2003 for many helpful comments. The usual disclaimer applies.

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