Objective and Subjective Welfare

Abstract

Trends in basic indicators of objective and subjective welfare (2004–2011) are analyzed in Central Asian countries and compared with the same indicators in Russia and Belarus. Subjective welfare is differentiated according to basic socio-demographic characteristics. A discrepancy between indicators of objective and subjective welfare in the countries of Central Asia is identified: objectively, the economic situation in these countries (with the exception of Kazakhstan) is unfavorable, but at the same time, the level of subjective satisfaction with financial status and life satisfaction levels are high. Possible reasons for this misalignment are discussed. In Russia, Kazakhstan, and Kyrgyzstan, people who have completed higher levels of education are more satisfied with life than those with a secondary education only.