Croatian Economic Survey Dedicated to Well-Being in Transitional Post-Socialist Countries

At the Economic Institute in Zagreb, this year’s edition of the scientific journal Croatian Economic Survey was presented, published by the Economic Institute Zagreb in partnership with the financial and business monthly Banka.

The journal is entirely dedicated to the theme of well-being in transitional post-socialist countries without relying on conventional macroeconomic indicators, revealed Sandra Švaljek, director of the Economic Institute. It consists of five articles in English that examine the concepts of  well-being and quality of life from sociological, psychological, and economic perspectives.

According to the words of the journal’s editor-in-chief, Maja Vehovec, who was the conceptual initiator in selecting this theme based on the ideas of Nobel laureate Joseph Stiglitz, the aim of these five articles is to initiate a scientific discussion on objective measures of well-being and subjective perceptions of quality of life, as well as to enable a shift in focus from GDP as the sole relevant indicator of well-being. GDP is an inadequate indicator of the actual quality of life of individuals, and their subjective perceptions are particularly important in post-socialist countries that have undergone a difficult transitional period. Therefore, there is a need for further research for which this journal should serve as a foundation, continues Maja Vehovec.

Authors Iva Tomić and Joanna Tyrowicz discuss in one article what happened to the middle class during the transition in Croatia and Poland, as well as the relationship between social inequality and economic growth in these two countries. Drago Čengić from the Institute of Social Sciences Ivo Pilar highlighted the conclusions of the article that reducing the public sector does not necessarily lead to a decrease in employees in public services, as examples from Poland and Croatia confirm, and that the transitional processes in these two countries did not destroy the middle class. The biggest difference between Poland and Croatia in this research is that the wages of highly qualified workers in Croatia have increased above the median value, thereby reducing their representation in the middle class, while in Poland their representation in the middle class is increasing.

Danijel Nestić is the author of an article on wage differences between women and men in Croatia. He concludes that women in Croatia, despite superior education, are poorly rewarded for their work, while Vedran Šošić from the Croatian National Bank emphasizes that it is difficult to take into account all the criteria that affect wage levels, and that it cannot be stated with certainty where and whether discrimination occurs. The fact is that compensation for women in Croatia has not significantly changed in relation to compensation for men.

In an article on well-being in the workplace, Massimo Franco and Monia Trombetta, based on research conducted in Italy, point to the connection between productivity and the overall sense of well-being in the workplace. Zvonimir Galić also emphasizes that happy workers are more motivated workers, and that achieving satisfaction in the workplace is a commendable goal in itself.

Research on life satisfaction in Croatia and Macedonia shows that Croatian citizens are among the most satisfied in transitional countries, while citizens in Macedonia are significantly less satisfied. Economic well-being has long been considered a prerequisite for a happy life, while the latest research shows the opposite, namely that happy individuals live a higher quality of life than less happy ones.

Banka and the Economic Institute Zagreb are also collaborating on a project they jointly launched under the name National Happiness Index, which shows the perception of quality of life and satisfaction among citizens in Croatia. It shows that citizens are increasingly dissatisfied and are finding it harder to meet their needs. Particularly dissatisfied are people between the ages of 24 and 34. (Zlatko Salahović)