Social Capital and Subjective Well-Being trends: Evidence from 11 European countries

Discovering whether social capital endowments in modern societies have been subjected or not to a process of gradual erosion is one of the most debated topics in recent economic literature. This new stream of research has been inaugurated by Putnam’s pioneering studies about social capital trends in the United States. Recently, a considerable work by Stevenson andWolfers (2008) put a new emphasis on this topic contending Easterlin’s assessment. Present work is aimed at analyzing the relationship between changes in social capital and subjective well-being in Europe considering 11 different countries. In particular, we would like to answer questions such as: 1) is social capital in Europe declining? Is such erosion a general trend of modern societies or is it a characteristic feature of only some of them? 2) social capital trend can help to explain subjective well-being trend? In so doing, our research considers three different set of proxies of social capital controlling for time and socio-demographic aspects in eleven different European countries using WVS data between 1980 and 2000.Our results are encouraging, showing evidence of a probable relationship between social capital and happiness. Furthermore, our results show that during last twenty years European citizens have persistently lost confidence in the judicial system, in the church, in armed forces and the police. Finally, considering single countries, we discover that United Kingdom is the only European country with a clear and negative pattern for social capital: quite every proxy of social capital in UK declined over the considered period

Income missing values imputation: EVS 1999 and 2008

Missing data is a very frequent obstacle in many social science studies. The absence of values on one or more variables can signi?cantly affect statistical analyses by reducing their precision and by introducing selection biases. Being unable to account for these aspects may result in severe misrepresentation of the phenomenon under analysis. For this reason several approaches have been proposed to impute missing values. In present work I will adopt multiple imputation to impute income missing data for Luxembourg in the European Values Study data-set of 1999 and 2008.multiple imputation; missing data; income; EVS; cross-section

Keeping up with the e-Joneses: Do online social networks raise social comparisons?

Online social networks such as Facebook disclose an unprecedented volume of personal information amplifying the occasions for social comparisons. We test the hypothesis that the use of social networking sites (SNS) increases people's dissatisfaction with their income. After addressing endogeneity issues, our results suggest that SNS users have a higher probability to compare their achievements with those of others. This effect seems stronger than the one exerted by TV watching, it is particularly strong for younger people, and it affects men and women in a similar way.Comment: 25 pages, 5 figure

Online networks and subjective well-being

We argue that the use of online networks may threaten subjective well-being in several ways, due to the inherent attributes of Internet-mediated interaction and through its effects on social trust and sociability. We test our hypotheses on a representative sample of the Italian population. We find a significantly negative correlation between online networking and well-being. This result is partially confirmed after accounting for endogeneity. We explore the direct and indirect effects of the use of social networking sites (SNS) on well-being in a SEM analysis. We find that online networking plays a positive role in subjective well-being through its impact on physical interactions, whereas SNS use is associated with lower social trust. The overall effect of networking on individual welfare is significantly negative.Comment: 40 page

Happy for How Long? How Social Capital and GDP relate to Happiness over Time

What does predict the evolution over time of subjective well-being? We answer this question correlating cross country time series of subjective well-being with the time series of social capital and/or GDP. First, we adopt a bivariate methodology similar to the one used used by Stevenson and Wolfers (2008), Sacks et al. (2010), Easterlin and Angelescu (2009), Easterlin et al. (2010). We find that in the long (at least 15 years) and medium run (6 years) social capital is a powerful predictor of the evolution of subjective well-being. In the short-term (2 years) this relationship weakens. Indeed, short run changes in social capital predict a much smaller portion of the changes in subjective well-being, compared to longer periods. GDP follows a reverse path: in the short run it is more positively correlated to the changes in well-being than in the medium-term, while in the long run the correlation vanishes. Moreover, we run trivariate regressions of time series of subjective well-being on time series of both social capital and GDP, which confirm the results from bivariate analysis.Easterlin paradox; GDP; economic growth; subjective well-being; happiness; life satisfaction; social capital; time-series; short run; medium run

Online Networks, Social Interaction and Segregation: An Evolutionary Approach

We have developed an evolutionary game model, where agents can choose between two forms of social participation: interaction via online social networks and interaction by exclusive means of face-to-face encounters. We illustrate the societal dynamics that the model predicts, in light of the empirical evidence provided by previous literature. We then assess their welfare implications. We show that dynamics, starting from a world in which online social interaction is less gratifying than offline encounters, will lead to the extinction of the sub-population of online networks users, thereby making Facebook and alike disappear in the long run. Furthermore, we show that the higher the propensity for discrimination between the two sub-populations of socially active individuals, the greater the probability that individuals will ultimately segregate themselves, making society fall into a social poverty trap

Social capital, economic growth and well-being

In the long run economic growth does not improve people's well-being. Traditional theories – adaptation and social comparisons – explain this evidence, but they don't explain what shapes the trend of subjective well-being and its differences across countries. Recent research identified in social capital a plausible candidate to explain the trends of well-being. This dissertation adopts various econometric techniques to explore the relationship over time among social capital, economic growth and subjective well-being. The main conclusion is that social capital is a good predictor of the trend of subjective well-being, both within and across countries. Hence, policies for well-being should aim at preserving and enhancing social capital for the quality of the social environment matters

Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?

Using longitudinal data from the German Socio-Economic Panel, we estimate the variation of subjective well-being experienced by Germans over the last two decades testing the role of some of the major correlates of people's well-being. Our results suggest that the variation of Germans' well-being between 1996 and 2007 is well predicted by changes over time of income, demographics and social capital. The increase in social capital predicts the largest positive change in subjective well-being. Income growth, also predicts a substantial change in subjective well-being, but it is compensated for about three fourths by the joint negative predictions due to income comparison and income adaptation. Finally, we find that aging of the population predicts the largest negative change in subjective well-being. This result appears to hinge on the large loss of satisfaction experienced by individuals in old age.Subjective well-being, life satisfaction, social capital, sociability, relational goods, relative income, social comparisons, income adaptation, SOEP

Money, Trust and Happiness in Transition Countries: Evidence from Time Series

The evolution over time of subjective well-being (SWB) in transition countries exhibit some peculiarities: greater variations which are more strongly correlated with the trends of GDP relative to other countries. What is the possible role of social trust in predicting such variations? We compare the capacity of the trends of GDP and of social trust to predict the trends of SWB. We find that the strength of the relationship between social trust and SWB over the medium-term is comparable to that of GDP. Our conclusion is that in the medium-term, even in countries considered as an extreme case of relevance of material concerns for well-being, social trust is a powerful predictor of the evolution over time of SWB. However, in the short run the relationship between social trust and SWB does not hold and GDP stands out as the only significant correlate of SWB.Easterlin paradox; GDP; economic growth; subjective well-being; happiness; life satisfaction; social capital; time-series; short run; transition countries