Exploring the Nexus Between Life Satisfaction and Institutional Trust: Evidence From Italian and Foreign Citizens

ABSTRACT The aim of this paper is to study the subjective well‐being (SWB) of the resident population in Italy, by analyzing the association between self‐reported life satisfaction and institutional trust, controlling for socio‐demographic, human capital, other measures of SWB and government change, whilst distinguishing between Italian and foreign citizens. Indeed, examining disparities in SWB between Italian and foreign citizens is crucial for understanding if their well‐being levels are similar and which factors might either foster or hinder parity. Italy is a peculiar case study, as it is characterized by a general lack of trust in institutions; moreover, the relationship between SWB and institutional trust has so far not been approached from a native/immigrant comparative perspective. We use pooled data from seven rounds (2015–2021) of the Multipurpose survey on households ‘Aspects of Daily Life’ carried out by the Italian National Institute of Statistics (ISTAT). Our dependent variable is self‐reported life satisfaction. Institutional trust is built as an index of respondent's trust in the Italian parliament, the government, political parties, the judicial system and law enforcement. We run OLS linear regression models with wave fixed effects to account for changes in the distribution between the different years. Life satisfaction is slightly higher for Italians compared to foreign citizens. Institutional trust appears positive and a significant predictor of life satisfaction for both Italian and foreign citizens. However, results suggest that institutional trust has a mediating role for the life satisfaction of foreign citizens, meaning that trust in institutions is more important for non‐Italian citizens. Finally, government change is positively associated with life satisfaction.