Panel Data Analysis of Subjective Well-Being in European Countries in the Years 2013–2022

Abstract

The background of the study is the analysis of social expenditure efficiency in European countries over time. Terminological considerations leading from hedonism and eudaimonism to the concept of subjectively perceived well-being and the Easterlin paradox are necessary to understand the differences in changes in the level of well-being among countries and over time. The purpose of the study is to analyse citizens’ declarations on subjective well-being as an indicator of the efficiency of social policy. The methods used for statistical analysis are conventional and dynamic data envelopment analysis (DEA) techniques. The EU-SILC and OurWorldInData.org data analysed with DEA provided the main results. The study identified significant fluctuations in subjective well-being, with a clear long-term upward trend. Among the surveyed countries, there are those where progress is due to internal factors, while in the Mediterranean countries, external factors predominate. The level of the estimated DEA efficiency indicators (TC and EC) indicate the improvement in input efficiency in a substantive number of countries, e.g., Estonia and Cyprus, along with persistently low indicator values in some member states, Italy and Luxemburg. In conclusion, the author indicated areas in individual countries where attempts to improve social policy are needed to raise and maintain desirable levels of subjective well-being.