Subjective well-being and regional productivity in the European Union

Martijn Burger (), Sarah Courchesne (), Ilias Kostarakos (), Chiara Peroni (), Francesco Sarracino () and Spyridon Stavropoulos ()
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Martijn Burger: Erasmus University Rotterdam
Sarah Courchesne: Open University of the Netherlands
Ilias Kostarakos: European Commission
Chiara Peroni: STATEC Research
Francesco Sarracino: STATEC Research
Spyridon Stavropoulos: University of Patras

The Annals of Regional Science, 2025, vol. 74, issue 3, No 21, 25 pages

Abstract: Abstract In this study, we examine the relationship between total factor productivity (TFP) and subjective well-being (SWB) in European regions. Using OLS and Lewbel IV estimators, we find a significant and positive effect of SWB on TFP. On average, regions that score 1-point higher on SWB report 19% higher TFP levels. Since TFP is an important driver of economic growth, these findings indicate that promoting SWB will benefit economic growth at the regional level.

Keywords: I31; R11 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00168-025-01415-0

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