Lost in Transition: Life Satisfaction on the Road to Capitalism

Richard Easterlin

No 3409, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In the transition from socialism to capitalism in Eastern Europe life satisfaction has followed the V-shaped pattern of GDP but failed to recover commensurately. In general, increased satisfaction with material living levels has occurred at the expense of decreased satisfaction with work, health, and family life. Disparities in life satisfaction have increased markedly with those hardest hit being the less educated and persons over age 30; women and men have suffered about equally. The asymmetric response of life satisfaction to decreases in GDP in transition countries and increases in GDP in non-transition countries is arguably due to loss aversion.

Keywords: transition; capitalism; socialism; loss aversion; happiness (search for similar items in EconPapers)
JEL-codes: D60 I31 P27 P5 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2008-03
New Economics Papers: this item is included in nep-hap, nep-lab, nep-ltv and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Published - published in: Journal of Economic Behavior and Organization, 2009, 71 (2), 130-145

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Related works:
Journal Article: Lost in transition: Life satisfaction on the road to capitalism (2009)
Working Paper: Lost in Transition: Life Satisfaction on the Road to Capitalism (2008)
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