Subjective well-being and regional productivity in the European Union
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.
Authors
- Chiara Peroni
- Spyridon Stavropoulos (ORCID: https://orcid.org/0000-0003-0783-2988)
- Francesco Sarracino (ORCID: https://orcid.org/0000-0002-4073-7037)
- Martijn Burger (ORCID: https://orcid.org/0000-0002-9529-849X)
- Ilias Kostarakos (ORCID: https://orcid.org/0000-0003-0815-4381)
- Sarah Courchesne
Institutions
- University of Patras (GR)
- University of Johannesburg (ZA)
- Joint Research Center (ES)
- Open University of the Netherlands (NL)
- Erasmus University Rotterdam (NL)
Publication Details
- Journal
- The Annals of Regional Science
- Published
- 2025-09-01
- DOI
- https://doi.org/10.1007/s00168-025-01415-0
- Citations
- 2
- Primary Topic
- Regional Development and Policy
- Type
- article
- Field-Weighted Citation Impact
- 17.04
Funders
- European Commission
- HORIZON EUROPE Framework Programme