Macroeconomic Conditions and Well-being: Do Social Interactions Matter?

Emilio Colombo, Valentina Rotondi and Luca Stanca

No 355, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: This paper investigates the role played by social interactions as moderators and mediators of the effects of macroeconomic conditions on well-being. Using survey data for a representative sample of Italian individuals, we find that social interactions play a dual role. On the one hand, the well-being of people who spend more time with their friends or go out more often is less sensitive to the effects of macroeconomic fluctuations. On the other hand, social interactions are negatively affected by worsening macroeconomic conditions, thus playing a relevant role in the transmission of macroeconomic shocks to subjective well-being. More specifically, the negative impact of downturns on frequency of going out and active participation in associations significantly contributes to the adverse effects of recessions on satisfaction with life and with individual life domains.

Keywords: macroeconomic fluctuations; unemployment; subjective well-being (search for similar items in EconPapers)
JEL-codes: E32 I31 I38 (search for similar items in EconPapers)
Pages: 20
Date: 2016-12-31, Revised 2016-12-31
New Economics Papers: this item is included in nep-hap, nep-ltv, nep-mac, nep-net, nep-neu and nep-soc
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Journal Article: Macroeconomic conditions and well-being: do social interactions matter? (2018)
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