The determinants of well-being in Europe : a focus on income and growth

Abstract

This study aims to (1) highlight any differences in the importance of subjective well being determinants which may exist among individuals of different income and (2) analyse how the role of such determinants may have changed during a period of economic growth. To do so, three hypotheses are set, namely that (1) the importance of household income diminishes with rising income levels, (2) non-income determinants amass greater importance among the rich, and (3) the role of non-income determinants heightens during a period of rapid economic growth. These hypotheses are tested using the 2011 and 2016 European Quality of Life surveys (EQLS) published by Eurofound. Using only data collected from respondents in the ten European countries whose real GDP per capita level in 2016 was at least 10% higher than that in 2011, a cross-sectional analysis is applied to each of four income groups in both years. Findings indicate a declining importance of income during a period of economic growth while satisfaction with accommodation and family life, not being subject to environmental problems and finding time to do enjoyable activities mostly matter to the richest respondents. Furthermore, particular non-income rendering activities, such as participation in sporting activity have become more important during a period characterised by economic growth.