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An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018

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  • Biermann, Philipp
  • Welsch, Heinz
Abstract
We decompose the satisfaction gap between East and West Germany into objective circumstances and subjective mentality, the latter capturing the way circumstances are being evaluated. Using the methodology proposed by Senik (2014) we find circumstances and mentality to contribute in the proportion 55: 45%. The mentality-related gap is driven by birth cohorts socialized under different political regimes – communist and liberal-capitalist – and disappears for the youngest cohort group. Results point towards churchliness and satisfaction with democracy being important explanations of the mentality gap. Within-person changes of the mentality gap occurred as aspirations or worries concerning politico-economic shocks were adjusted.

Suggested Citation

  • Biermann, Philipp & Welsch, Heinz, 2021. "An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 1-18.
    • Handle: RePEc:eee:jeborg:v:181:y:2021:i:c:p:1-18
    DOI: 10.1016/j.jebo.2020.11.027
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    Cited by:

    1. Thilo K.G. Haverkamp & Heinz Welsch & Andreas Ziegler, 2022. "The Relationship between Pro-environmental Behavior, Economic Preferences, and Life Satisfaction: Empirical Evidence from Germany," MAGKS Papers on Economics 202204, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Chia-Jung Tsai & R. Gordon Rinderknecht & Emilio Zagheni, 2023. "The interplay between refugee inflows and media coverage in determining attitudes towards immigration in Germany," MPIDR Working Papers WP-2023-035, Max Planck Institute for Demographic Research, Rostock, Germany.
    3. Heinz Welsch, 2022. "What Shapes Satisfaction with Democracy? Interests, Morals, and the German East–West Divide," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 197-217, August.
    4. Kellermann, Kim Leonie, 2024. "Trust we lost: The impact of the Treuhand experience on political alienation in East Germany," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 54-75.
    5. Haverkamp, Thilo K.G. & Welsch, Heinz & Ziegler, Andreas, 2023. "The relationship between climate protection activities, economic preferences, and life satisfaction: Empirical evidence for Germany," Energy Economics, Elsevier, vol. 128(C).
    6. Tim Friehe & Christian Pfeifer, 2024. "Predicting satisfaction with democracy in Germany using local economic conditions, social capital, and individual characteristics," Economics of Governance, Springer, vol. 25(3), pages 335-377, September.

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    More about this item

    Keywords

    Germany; Happiness; Life satisfaction; Reunification; Mentality; Communism;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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