Inflation, Unemployment and Happiness: empirical evidences of the contribution of Economic Growth

Jalal El Ouardighi and Francis Munier

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: This paper improves the understanding of the trade-off between inflation and unemployment and its impact on Subjective Well-Being (SWB), considering the role of the (Growth Domestic Product) GDP Growth and the issue of heterogeneity/nonlinearity. Effects on SWB depends on the spread between observed and potential GDP growth. The results point out country heterogeneity and nonlinearity of the marginal effects of macroeconomic variables on SWB. Economic growth moderates the relationship between unemployment as well as inflation and SWB. Both unemployment and GDP per capita growth rates have an important impact on Europeans’ SWB. Fostering economic growth must be one of the priorities of European policy.

Keywords: Subjective well-being; Economic growth; unemployment; inflation; heterogeneity / nonlinearity. (search for similar items in EconPapers)
JEL-codes: C33 I31 O10 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-gro and nep-hap
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2019-29

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