The Structure of Subjective Well-Being and Its Relation to Objective Well-Being Indicators: Evidence from EU-SILC for Serbia

In this article, we examine the structure of the subjective well-being and its relation to objective well-being indicators using the data from the European Union's Survey on Income and Living Conditions (EU-SILC) from Serbia. This is one of the first papers to analyze a new module on subjective well-being from EU-SILC micro-dataset (with over 20,000 respondents). We investigate the factor structure of the items and the differences in the association of subjective well-being dimensions with objective indicators of well-being within the Organisation for Economic Co-operation and Development Better Life Initiative framework. Three factors emerge from the principal components analysis: general life satisfaction, affective well-being, and satisfaction with the local environment. The analysis further reveals that life satisfaction is more related to the material living conditions, such as income, unemployment, and housing conditions, while affective well-being is more related to non-material indicators of well-being such as perceived health, personal security, and social connections. On the other hand, positive and negative affect within the affective well-being are not clearly separable, nor is the eudaimonic indicator from either life satisfaction or affective well-being.