ABSTRACT
Using the World Values Survey data gathered during the periods of 2010-2014 and 2017-2022, this study analyzes the impact of inflation, GDP growth, and unemployment on individual subjective well-being (SWB) across about 60 countries. Data on life satisfaction and happiness is used to measure individual assessment of SWB. For the analysis, the ordered probit and Ordinary Least Squares (OLS) regressions are employed. We find that both inflation and unemployment negatively affect SWB, while GDP growth positively affects individual well-being. The weight of inflation is greater than unemployment particularly when life satisfaction is regressed on macroeconomic measures. When happiness is used in the equation, the order of importance for macroeconomic measures varies between the waves and by the model of analysis. The statistical significance and the magnitude of the relationship between SWB and macroeconomic variables also differ by socioeconomic and demographic factors.
Keywords
Subjective Well-Being, Inflation, Unemployment, GDP Growth