Life satisfaction in the transition region

On the bright side, “life satisfaction” is higher in 2016 than it was in 2006 in almost all the surveyed countries. Life satisfaction has particularly increased in Central Asia, where about 70 per cent of respondents are currently happy with their lives overall. Similarly, life satisfaction among respondents in central Europe and the Baltic states has increased since 2006 and now compares well with Germany and Italy, where 73 and 43 per cent of the population are satisfied with their lives respectively. The only countries that have registered a decline in overall life satisfaction levels since 2006 are Belarus, Moldova, Russia, the Slovak Republic, Slovenia, Turkey and Ukraine – countries which, perhaps not surprisingly, also report the lowest levels of life satisfaction in the entire transition region (with the sole exception of Slovenia).6

Taken together, these results indicate that the life satisfaction gap between the transition region and western European comparator countries has finally closed. The reason for this apparent “happiness convergence” is twofold: between 2010 and 2016, life satisfaction has, on average, increased in the transition region while it has declined in both Germany and Italy.7

Chart 1.2 compares the percentage of male and female respondents who are satisfied with their lives in all the countries included in the 2016 survey. The chart shows that life satisfaction levels for men and women are highly correlated: in countries where life satisfaction is high, both men and women are more likely to report higher life satisfaction than in countries where levels are lower. However, on average, women report slightly higher levels of life satisfaction than men, apart from in nine countries (Armenia, Azerbaijan, Belarus, Bulgaria, Cyprus, FYR Macedonia, Greece, Kazakhstan and Tajikistan) where men report a higher life satisfaction than women. In Azerbaijan the difference is nearly 10 percentage points, while in the remaining countries the discrepancies are less discernible. In Russia, Turkey and the western European comparator countries, the data indicate almost no gender disparity.

Chart 1.3 shows that, on average, the level of life satisfaction decreases with age in the transition region.8 However, in some countries (such as Cyprus, FYR Macedonia, the Kyrgyz Republic and Uzbekistan) life satisfaction is “u-shaped”: it decreases towards midlife and increases subsequently towards retirement or from about the age of 55.9 Additional analysis of the LiTS data shows that, on average, people who are completing their education and entering the labour market (those aged 25-30) report higher levels of life satisfaction in 2016 than respondents of the same age did in 2010. This may to some extent reflect the recovery from the financial crisis.

Chart 1.4 provides some evidence that life satisfaction dropped more in countries where GDP growth was limited or negative. This is expected since life satisfaction is closely associated with incomes in market economies. The chart reveals that the largest falls in life satisfaction occurred in Russia, Belarus, Kosovo and Turkey respectively. Mongolia is a noteworthy outlier, as the level of life satisfaction has hardly improved since 2010 in spite of its high GDP growth.

Improvements in both life satisfaction and income per capita took place across most of central Europe and the Baltic states. Indeed, findings from the EBRD’s Transition Report 2016-17 suggest that life satisfaction levels in post-communist countries are no longer lower than those in comparator countries. Moreover, when income per capita is controlled for, there is no longer a significant difference between post-communist and other countries.10

It is also important to note that being unemployed has a significant impact on life satisfaction.11 Regression results show that being unemployed reduces the likelihood of life satisfaction by 12 percentage points, even after accounting for differences in incomes.12

Chart 1.5 presents a scatter plot of optimism and life satisfaction rates by country. The data show that people in most transition countries are more optimistic about the future of younger generations than their counterparts in western Europe. This is expected since respondents in western countries already have significantly higher living standards (on average) and therefore have less reason to believe that the next generation will fare significantly better than themselves.

Chart 1.5 also shows that the relationship between life satisfaction and optimism within the transition sample is positive. For example, similarly to 2010, Tajik respondents are not only happy at present but also believe that future generations will have a better life, whereas those in Moldova are relatively dissatisfied (compared with other countries) and also think that younger cohorts will not enjoy a better quality of life. Further analysis of the LiTS III data also shows that married people are more likely to be optimistic compared to those who are single. There is a statistically significant and positive relationship between optimism and monthly income and good health, as well as holding a tertiary-level education.13

Chart 1.6 reveals that job satisfaction (that is, a job that matches well with the employee’s priorities and preferences, including job performance) remains relatively low in the transition region. Although cross-country comparisons indicate a substantial variation across countries, on average, the level of job satisfaction has fallen relative to 2010. The average level of job satisfaction in all countries is rather low, with the exception of Estonia (80 per cent), Tajikistan (70 per cent), the Kyrgyz Republic (67 per cent), Kazakhstan (65 per cent), Lithuania (64 per cent) and Slovenia (64 per cent). Only about 30 per cent of respondents are satisfied with their job in Armenia, Georgia, Greece and Moldova, a proportion that is considerably lower than the transition region average of 51 per cent.

Recent research shows that inequality of opportunity in the transition region is higher in terms of getting a “good job” than it is in terms of getting a job in general and also that job satisfaction is one of the most critical influences on life satisfaction.14 Consistent with this, Chart 1.6 shows that there is a strong positive correlation at the country level between the two variables, which is particularly visible in central Europe and the Baltic states and in Central Asia. This is important as studies find that employment quality contributes to people’s financial, social, physical and emotional well-being. This, in turn, suggests that the adoption of practices such as flexible work options may result in benefits for employers as well as employees.15

The proportion of respondents who interacted with service providers varies considerably according to the type of service and by region (see Chart 1.7). The most frequently accessed service is the public health system, utilised on average by 56 per cent of the population in the 12 months prior to the survey. The countries with the highest utilisation rates are those in central Europe and the Baltic states and in Russia, where approximately 70 per cent of respondents reported that either they or a household member had used services provided by the public health system. This figure is higher than the averages for the western European comparators (55 per cent for Germany and 62 per cent for Italy) and twice the utilisation rate of Turkey. Utilisation rates for other reported services are much lower. The next highest rates are for requests for official documents (21 per cent), interaction with traffic police (19 per cent) and provision of primary or secondary public education (18 per cent).

Chart 1.8 illustrates satisfaction with public services by region. The vocational public education system receives the most favourable ratings, with 75 per cent of the respondents who utilised those services reporting to be either satisfied or very satisfied with their quality and efficiency. Similarly, 74 per cent of respondents were satisfied with the service provided by officials when making requests for documents and with the provision of primary and secondary education. Satisfaction with public health care services sits at about 60 per cent, which is substantially lower than the average for Germany (76 per cent) but higher than the average for Italy (54 per cent). By contrast, civil courts and unemployment benefits receive the lowest ratings with only about 45 per cent of respondents reporting to be satisfied with the quality and efficiency of these services.

Overall public service satisfaction levels tend to be somewhat higher in central Europe and the Baltic states and in Turkey, and generally lower in Central Asia and in eastern Europe and the Caucasus, although there is considerable variation across individual countries. Interestingly, the two western European comparator countries, Germany and Italy, rank lower than central Europe and the Baltic states and Turkey for overall satisfaction with the quality and efficiency of public services, with 64 and 53 per cent of respondents reporting to be satisfied respectively. It is also noteworthy that satisfaction with service delivery in transition countries has, on average, increased compared to LiTS II levels (2010).

Looking at the country level, Germany, Italy and Russia report the highest incidence of complaints about waiting times within their public health care systems, with 54, 72 and 67 per cent of interviewed respondents respectively saying that they think waiting times are too long. Respondents in central Europe and the Baltic states follow at 50 per cent, then Turkey (47 per cent) and the countries of south-eastern Europe (42 per cent). Around 40 per cent of respondents in Russia and 30 per cent of respondents in Central Asia and in eastern Europe and the Caucasus report that lack of adequate drug treatment is an important problem. On average, however, LiTS III data show modest progress since 2010 with regard to public perceptions of the quality and efficiency of health care service delivery.

Chart 1.10 shows the main causes for concern in relation to the provision of public education, whether at primary, secondary or vocational level, are “poor teaching”, “no textbooks or other supplies”, “facilities in poor conditions” and “overcrowded classrooms”. Statistical analysis reveals that the reported level of satisfaction with the public education system is also positively associated with life satisfaction and that there is no discernible difference in the type of problems encountered in urban educational facilities as compared to rural ones. In addition, service users who feel that unofficial payments are required to obtain the level of service desired are more likely to report dissatisfaction with education services.

While poor teaching and a lack of textbooks and other supplies are the most common areas of concern about the public education systems in transition countries, disaggregated results show that the rankings vary considerably across regions. In Turkey, dissatisfaction with teaching quality is among the highest across the transition region and substantially higher than the western European comparators (17 per cent for Germany and 23 per cent for Italy), but in central Europe and the Baltic states the level is one of the lowest. Significant differences can also be noted when it comes to satisfaction with classroom size, where the largest difference in averages between the transition region and the western European countries is observed (14 per cent for Germany and 21 per cent for Italy). However, a comparison with the LiTS II data reveals an increase in the proportion of respondents who are either satisfied or highly satisfied with the quality and efficiency of public education within the transition region between 2010 and 2016.

Access to the internet at home, including on a smartphone, varies across regions (see Chart 1.12). Overall, it seems to be positively correlated with public utility satisfaction and, on average, the figures for the transition region are about 10 percentage points lower than those of Germany (85 per cent) and Italy (80 per cent). In the transition region, access to the internet is higher among those who live in urban areas as opposed to rural areas (except in Kosovo and Turkey). More than 80 per cent of respondents in Estonia, Kosovo, Poland and Russia report having an internet connection at home. Respondents in Azerbaijan, Georgia, Mongolia and Tajikistan are less likely to have internet access at home and face more difficulties obtaining internet access in rural areas compared to their counterparts in the transition region.

The level of material well-being can directly influence life satisfaction,16 so a few questions in LiTS III were asked to measure this among interviewed respondents and their households, such as:

Do you or anyone in your household possess (or use) the following items:

a) telephone
b) TV
c) computer/laptop/tablet
d) washing machine
e) car
f) bicycle
g) motorcycle.

Chart 1.13 shows the results of the above question, broken down by items and by region. Overall, nearly all surveyed households possess a television, telephone and washing machine. The exception is Central Asia where only 62 per cent of households report having a washing machine. When it comes to the other items (bicycles, cars, computers and motorcycles) there is a visible gap between the transition region countries and the western European comparators where, on average, 62 per cent of German households and 66 per cent of Italian ones respond in the affirmative to these questions. For example, only 40 per cent of respondents in eastern Europe and the Caucasus have a car and about 20 per cent of respondents have a bicycle in Turkey, while more than 70 per cent of respondents have both a car and a bicycle in the two western European comparators.

Work-life balance is not only important for people’s life satisfaction but also for the relationships that people have with their friends, families and the wider community. Earlier research has documented that people are less stressed, have more energy and are more satisfied with their lives when they return from a holiday.17 With this in mind, LiTS III investigates whether respondents are able to afford at least one holiday a year (results presented in Chart 1.14). Respondents were asked the following question:

In general, could your household afford (if it wishes), a one-week holiday out of home, including a stay in a second home/country house or at friends/relatives, every year?

As Chart 1.14 illustrates, the highest level of holiday affordability is in Russia, where 68 per cent of respondents indicate that their household can afford an annual one-week holiday away from home, followed by Slovenia, Estonia and Poland. At the other end of the spectrum, the lowest levels of reported affordability are found in Armenia, Azerbaijan, Georgia and Tajikistan, where less than 20 per cent of respondents report that their family can afford a one-week holiday. Altogether, the average reported level of affordability in the transition region is significantly lower than in the western European countries where, 79 per cent of German and 61 per cent of Italian respondents say they can afford a week-long holiday each year.

Chart 1.15 shows the percentage of people in each country who report that their households can afford to consume meat, chicken or fish every second day. The chart demonstrates that most countries in the transition region are close to the high levels of food affordability seen in western Europe, where 96 per cent of Germans and 84 per cent of Italians can afford to consume the aforementioned foods at least three times a week. Armenia, Azerbaijan, Georgia, Kosovo, Tajikistan and Turkey, however, still lag behind, with less than 50 per cent of households saying they can afford to eat meat, chicken or fish every second day, compared to around 65 per cent of the sample in the transition region as a whole.

Chart 1.16 reports the proportion of respondents who say that their household can “easily” meet unexpected expenses of an amount equal to the domestic poverty line with its own resources. As this chart shows, the highest levels of affordability among transition economies are observed in Albania, Central Asian countries (except Mongolia), Kosovo and Turkey. At the other end of the scale, Armenia, Azerbaijan, Bosnia and Herzegovina, Cyprus, Greece and Hungary have the lowest levels of ability to cope with unexpected expenses.

The results are striking when it comes to stated attitudes towards sexual minorities. Chart 1.17 shows that, on average, more than 50 per cent of people in the transition region would prefer not to have gay or lesbian neighbours. There has nevertheless been a positive change in tolerance perceptions towards gays and lesbians compared to 2010, on average. The increase in tolerance was largest in Turkey and south-eastern Europe, while the trend of acceptance of same-sex relationships has seemingly reversed in Armenia, Kazakhstan, Romania, Russia and Uzbekistan. Introducing constitutional bans on same-sex marriage may have played a role in the decline in tolerance in these countries.19

About one-third of respondents in Russia and in central Europe and the Baltic states report negative feelings towards immigrants or foreign workers. By contrast, about 85 per cent of people in south-eastern Europe, 89 per cent of respondents in Germany and 80 per cent of respondents in Italy have no issue with having immigrants or foreign workers as neighbours. Chart 1.17 shows that, on average, people in the transition region have become slightly less tolerant of the presence of immigrants in their countries since 2010.

Tolerance of racial minorities shows similar features. Overall, there is a slight rise in the percentage of respondents who say they have no problem having racial minorities as neighbours but a substantial amount of variation across countries can still be observed. There is also no strong evidence that links the changes in attitudes towards sexual and racial minorities, as well as immigrants, with the economic crisis.

In general, people claim not to object to having people of a different religion as neighbours. However, in Central Asia and in eastern Europe and the Caucasus, the proportion of respondents expressing such an aversion reaches about 20 per cent of the sample. In these regions many also express negative feelings towards unmarried couples.

Across the transition countries, the immigrant population has mostly arisen through the free-movement of labour and humanitarian migration, such as refugees and asylum seekers. In order to understand people’s views on immigration in the transition region, LiTS III respondents were asked whether they believe that immigrants make a valuable contribution to the national economy of their country. The results are shown in Chart 1.18 and reveal that, on average, only about 25 per cent of respondents answered this question in the affirmative.

There is now less support for the presence of immigrant workers in 17 transition countries when compared with the situation in 2010. Support has noticeably dropped in most of south-eastern Europe and in central Europe and the Baltic states (except Albania and Kosovo). In general, respondents from the surveyed EU countries, who mostly benefit from free movement within the Union, are reluctant to indicate that immigrants make a valuable contribution to their national economy. In contrast, Turkey has seen a rise in support for immigration compared to 2010, despite the recent large influx of refugees.

Chart 1.19 shows that in countries where people are more likely to underestimate their position on the income ladder, respondents also tend to agree more that the gap between the rich and the poor should be reduced. In most transition countries, on average, households tend to place themselves in lower deciles on the income ladder than they actually are (except in Albania, FYR Macedonia and Turkey). In addition, the majority of people in the transition region think that the gap between the rich and the poor should be reduced. Contrasting the results from LiTS II with LiTS III shows that people have become more worried about income inequality over the past six years. Notable exceptions to this increasing trend are Belarus, Turkey, Ukraine and Uzbekistan where less than 65 per cent of respondents think that income inequality should be reduced, compared to 77 per cent of respondents in Germany and 83 per cent of respondents in Italy.