Were COVID and the Great Recession well-being reducing?

Area of Science:

• Social Sciences
• Economics
• Psychology

Background:

• Subjective wellbeing is a key indicator of societal health.
• Understanding responses to economic and health crises is crucial for policy.

Purpose of the Study:

• To analyze trends in subjective wellbeing across Europe in response to major global events.
• To compare reported wellbeing with economic expectations and broader development indices.

Main Methods:

• Utilized micro-data from six large-scale international surveys (2005-2023).
• Incorporated European Business and Consumer Surveys for economic expectations.
• Analyzed data from the Human Development Index (HDI) and World Happiness Report.

Main Results:

• Subjective wellbeing measures declined during the 2008/9 Great Recession and 2020-21 COVID-19 pandemic.
• Wellbeing also decreased in countries bordering Ukraine post-2022 invasion, though effects were not universal.
• Economic expectations dropped sharply during crises but recovered quickly; HDI and life satisfaction showed long-term increases, contrasted by rising negative affect.

Conclusions:

• Subjective wellbeing is sensitive to major shocks but shows resilience and long-term improvement.
• Economic expectations are more volatile than broader wellbeing indices.
• Despite overall improvements, rising negative affect warrants further investigation.