Can the government make us happier? Institutional quality and subjective well-being across Europe: a multilevel analysis using Eurobarometer Survey 2019

This paper examines whether the relationship between individuals’ socio-economic characteristics and subjective well-being differs across European countries with varying institutional contexts. Drawing on institutional theory and using the recent 2019 Eurobarometer survey, the multilevel econometric analysis of individuals in 28 European countries shows a strong association between well-being and the quality of institutions. The analysis demonstrates that people report higher subjective well-being when the quality of institutions and institutional trust in a country are conducive to their well-being. The paper then explores the implications for theory and tackling the issue of population’s well-being, suggesting how governments can impact people’s well-being.