Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 111: What contributes to life satisfaction in transitional Romania?

Daniela Andrén () and Peter Martinsson ()
Additional contact information
Daniela Andrén: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Peter Martinsson: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: This paper analyzes life satisfaction in Romania in 2001, 12 years after the collapse of communism and the beginning of the transition into a market economy. Using a survey of 1770 individuals, we find that our results are very similar to studies in Western Europe and the US. Life satisfaction increases with housing standard, health status, economic situation, education, trusting other people, and living in the countryside, and decreases with rising unemployment. However, life satisfaction is lower than in Western countries with about 75% of the people in the sample being not at all satisfied or quite dissatisfied with their life in general. A policy discussion concludes the paper.

Keywords: general life satisfaction; subjective well-being; domain specific satisfaction; Romania; transition economy

JEL-codes: I31

20 pages, October 15, 2003

Note: Published in Review of Development Economics, 2006, Vol 10, pp. 59-70.

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