Generate QR code
Open Access
Subscription Access
Economy and happiness in Russia: Empirical analysis
https://doi.org/10.32609/0042-8736-2022-8-48-67
Abstract
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.
About the Authors
O. N. Antipina
Lomonosov Moscow State University
Russian Federation
Russian Federation
Olga N. Antipina
Moscow
A. D. Krivitskaya
Lomonosov Moscow State University
Russian Federation
Russian Federation
Anna D. Krivitskaya
Moscow
References
1. Aistov A. V., Leonova L. A. (2011). Application of ordered choice econometric models for life satisfaction assessments. Information Systems and Mathematical Methods in Economics, No. 3, pp. 5—26. (In Russian).
2. Andreenkova A. V., Andreenkova N. V. (2019). Comparative analysis of life satisfaction determinants in Russia and in Europe. Discourse, Vol. 5, No. 1, pp. 67—81. (In Russian)
3. Antipina O. (2012). Economics of happiness as an academic research discipline. Voprosy Ekonomiki, No. 2, pp. 94—107. (In Russian). https://doi.org/10.32609/004287362012294107
4. Antipina O. N., Krivitskaya A. D. (2020). Impact assessment of macroeconomic indicators on happiness level. Russian Journal of Economic Theory, Vol. 17, No. 4, pp. 760—769. (In Russian). https://doi.org/10.31063/20736517/2020.174.1
5. Inglehart R. (2018). Cultural evolution: How people’s motivations are changing and how this is changing the world. Moscow: Mysl. (In Russian).
6. Larin A. V., Filiasov S. V. (2018). Adaptation and the Easterlin Paradox in Russia. HSE Economic Journal, Vol. 22, No. 1, pp. 59—83. (In Russian). https://doi.org/10.17323/1813869120182215983
7. Nastina E. A., Almakaeva A. M. (2020). Aspiration level and social comparison as factors in determining life satisfaction. Monitoring of Public Opinion: Economic and Social Changes, No. 1, pp. 206—224. (In Russian). https://doi.org/10.14515/monitoring.2020.1.09
8. Rodionova L. A. (2014). Easterlin Paradox in Russia. Izvestiya of Saratov University. Economics. Management. Law, Vol. 14, No. 2, Part 2, pp. 386—393. (In Russian). https://doi.org/10.18500/1994254020141422386393
9. Soboleva N. E., Sokolov B. O. (2021). Changes in the labor market status during the COVID19 pandemic and subjective wellbeing of Russians. Voprosy Ekonomiki, No. 12, pp. 139—153. (In Russian). https://doi.org/10.32609/00428736202112139153
10. AlvarezCuadrado F., Van Long N. (2008). A permanent income version of the relative income hypothesis. CESifo Working Paper Series, No. 2361. https://doi.org/10.2139/ssrn.1187572
11. Becchetti L., Massari R., Naticchioni P. (2014). The drivers of happiness inequality: Suggestions for promoting social cohesion. Oxford Economic Papers, Vol. 66, No. 2, pp. 419—442. https://doi.org/10.1093/oep/gpt016
12. Brand S., Beck J., Hatzinger M., Harbaugh A., Ruch W., HolsboerTrachsler E. (2010). Associations between satisfaction with life, burnoutrelated emotional and physical exhaustion, and sleep complaints. World Journal of Biological Psychiatry, Vol. 11, No. 5, pp. 744—754. https://doi.org/10.3109/15622971003624205
13. Brickman P., Campbell D.T. (1971). Hedonic relativism and planning the good society . In: M. H. Appley (еd.). Adaptation-level theory: A symposium. New York: Academic Press, pp. 287—302.
14. Brodeur A., Clark A. E., Fleche S., Powdthavee N. (2021). COVID19, lockdowns and wellbeing: Evidence from Google Trends. Journal of Public Economics, Vol. 193, pp. 1—8. https://doi.org/10.1016/j.jpubeco.2020.104346
15. Brzezinski M. (2019). Diagnosing unhappiness dynamics: Evidence from Poland and Russia. Journal of Happiness Studies, Vol. 20, No. 7, pp. 2291—2327. https://doi.org/10.1007/s1090201800446
16. Campbell A. (1972). Aspiration, satisfaction, and fulfillment. In: A. Campbell, P. Converse (еds.). Human meaning of social change. New York: The Russell Sage Foundation, pp. 441—466.
17. Cantril H. (1965). The pattern of human concerns. New Brunswick: Rutgers University Press.
18. Cheng T. C., Powdthavee N., Oswald A. J. (2014). Longitudinal evidence for a midlife nadir in human wellbeing: Results from four data sets. IZA Discussion Paper, No. 7942. https://doi.org/10.2139/ssrn.2396437
19. Clark A. E., Diener E., Georgellis Y., Lucas R. E. (2006). Lags and leads in life satisfaction: A test of the baseline hypothesis. IZA Discussion Paper, No. 2526. https://doi.org/10.2139/ssrn.956920
20. De Neve J.E., Oswald A. J. (2012). Estimating the influence of life satisfaction and positive affect on later income using sibling fixedeffects. Proceedings of the National Academy of Sciences, Vol. 109, No. 49, pp. 19953—19958. https://doi.org/10.1073/pnas.1211437109
21. Diener E., Inglehart R., Tay L. (2013). The theory and validity of life satisfaction scales. Social Indicators Research, Vol. 112, No. 3, pp. 497—527. https://doi.org/10.1007/s112050120076y
22. Diener E., Suh E. M., Lucas R. E., Smith H. L. (1999). Subjective wellbeing: Three decades of progress. Psychological Bulletin, Vol. 125, No. 2, pp. 276—302. https://doi.org/10.1037/00332909.125.2.276
23. Diener E., Tay L., Oishi S. (2013). Rising income and the subjective wellbeing of nations. Journal of Personality and Social Psychology, Vol. 104, No. 2, pp. 267—276. https://doi.org/10.1037/a0030487
24. Dolan P., Peasgood T., White M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective wellbeing. Journal of Economic Psychology, Vol. 29, No. 1, pp. 94—122. https://doi.org/10.1016/j.joep.2007.09.001
25. Duesenberry J. S. (1949). Income, saving and the theory of consumer behavior. Cambridge, MA: Harvard University Press.
26. Easterlin R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. In: P. A. David, M. W. Reder (еds.). Essays in honor of Moses Abramovitz. New York: Academic Press, pp. 89—125.
27. Easterlin R. A. (2013). Happiness and economic growth: The evidence. IZA Discussion Paper, No. 7187. https://doi.org/10.2139/ssrn.2210847
28. Easterlin R. A. (2016). Paradox lost? IZA Discussion Paper, No. 9676. https://doi.org/10.2139/ssrn.2725037
29. Easterlin R. A., O’Connor K. J. (2020). The Easterlin paradox. IZA Discussion Paper, No. 13923. https://doi.org/10.2139/ssrn.3743147
30. Easterlin R. A., Sawangfa O. (2007). Happiness and domain satisfaction: Theory and evidence. IZA Discussion Paper, No. 2584. https://doi.org/10.2139/ssrn.961644
31. Friedman M. (1957). A theory of the consumption function. New Jersey: Princeton.
32. Gander F., Hofmann J., Ruch W. (2021). From unemployment to employment and back: Professional trajectories and wellbeing. Applied Research in Quality of Life, Vol. 16, No. 2, pp. 739—751. https://doi.org/10.1007/s1148201909797y
33. Graham C., Eggers A., Sukhtankar S. (2004). Does happiness pay? An exploration based on panel data from Russia. Journal of Economic Behavior and Organization, Vol. 55, No. 3, pp. 319—342. https://doi.org/10.1016/j.jebo.2003.09.002
34. Greyling T., Rossouw S., Adhikari T. (2021). A tale of three countries: What is the relationship between COVID19, lockdown and happiness? South African Journal of Economics, Vol. 89, No. 1, pp. 25—43. https://doi.org/10.1111/saje.12284
35. Guriev S., Zhuravskaya E. (2009). (Un)happiness in transition. Journal of Economic Perspectives, Vol. 23, No. 2, pp. 143—168. https://doi.org/10.1257/jep.23.2.143
36. GutiérrezCobo M. J., MegíasRobles A., GómezLeal R., Cabello R., FernándezBerrocal P. (2021). Is it possible to be happy during the COVID19 lockdown? A longitudinal study of the role of emotional regulation strategies and pleasant activities in happiness. International Journal of Environmental Research and Public Health, Vol. 18, No. 6, pp. 1—11. https://doi.org/10.3390/ijerph18063211
37. Headey B. W., Wearing A. J. (1992). Understanding happiness: A theory of subjective well-being. Melbourne: Longman Cheshire.
38. Helliwell J., Layard R., Sachs J. (eds.) (2017). World happiness report 2017. New York: Sustainable Development Solutions Network.
39. Helliwell J. F., Layard R., Sachs J., De Neve J.E. (eds.) (2020). World happiness report 2020. New York: Sustainable Development Solutions Network.
40. Helliwell J. F., Layard R., Sachs J., De Neve J.E. (eds.) (2021). World happiness report 2021. New York: Sustainable Development Solutions Network.
41. Hirschman A., Rothschild M. (1973). The changing tolerance for income inequality in the course of economic development. Quarterly Journal of Economics, Vol. 87, No. 4, pp. 544—566. https://doi.org/10.2307/1882024
42. Jebb A. T., Tay L., Diener E., Oishi S. (2018). Happiness, income satiation and turning points around the world. Nature Human Behaviour, Vol. 2, No. 1, pp. 33—38. https://doi.org/10.1038/s4156201702770
43. Kahneman D. (2000). Experienced utility and objective happiness: A momentbased approach. In: D. Kahneman, A. Tversky (eds.). Choices, values, and frames. New York: Cambridge University Press and the Russell Sage Foundation, pp. 673—692.
44. Lange T. (2012). Job satisfaction and selfemployment: Autonomy or personality? Small Business Economics, Vol. 38, No. 2, pp. 165—177. https://doi.org/10.1007/s1118700992498
45. Lelkes O. (2013). Minimising misery: A new strategy for public policies instead of maximising happiness? Social Indicators Research, Vol. 114, No. 1, pp. 121—137. https://doi.org/10.1007/s1120501303877
46. Luttmer E. F. P. (2005). Neighbors as negatives: Relative earnings and wellbeing. Quarterly Journal of Economics, Vol. 120, No. 3, pp. 963—1002. https://doi.org/10.1093/qje/120.3.963
47. Ngamaba K. H., Panagioti M., Armitage C. J. (2018). Income inequality and subjective wellbeing: A systematic review and metaanalysis. Quality of Life Research, Vol. 27, No. 3, pp. 577—596. https://doi.org/10.1007/s111360171719x
48. Oswald A.J., Proto E., Sgroi D. (2015). Happiness and productivity. Journal of Labor Economics, Vol. 33, No. 4, pp. 789—822. https://doi.org/10.1086/681096
49. Stevenson B., Wolfers J. (2008). Economic growth and subjective wellbeing: Reassessing the Easterlin paradox. IZA Discussion Paper, No. 3654. https://doi.org/10.3386/w14282
50. Veenhoven R., Vergunst F. (2014). The Easterlin illusion: Economic growth does go with greater happiness. International Journal of Happiness and Development, Vol. 1, No. 4, pp. 311—343. https://doi.org/10.1504/IJHD.2014.066115
51. Voßemer J., Gebel M., Täht K., Unt M., Högberg B., Strandh M. (2018). The effects of unemployment and insecure jobs on wellbeing and health: The moderating role of labor market policies. Social Indicators Research, Vol. 138, No. 3, pp. 1229—1257. https://doi.org/10.1007/s112050171697y
52. Warr P. (2018). Selfemployment, personal values, and varieties of happiness—unhappiness. Journal of Occupational Health Psychology, Vol. 23, No. 3, pp. 388—401. https://doi.org/10.1037/ocp0000095
53. Yue W., Cowling M. (2021). The COVID19 lockdown in the United Kingdom and subjective wellbeing: Have the selfemployed suffered more due to hours and income reductions? International Small Business Journal, Vol. 39, No. 2, pp. 93—108. https://doi.org/10.1177/0266242620986763
Review
For citations:
Antipina O.N., Krivitskaya A.D. Economy and happiness in Russia: Empirical analysis. Voprosy Ekonomiki. 2022;(8):48—67. (In Russ.) https://doi.org/10.32609/0042-8736-2022-8-48-67
Views:
1537
Email this article 
