Cushioning the Effect of Financial Strain on Well-Being in Times of Crisis. a Comparative Analysis of the Role of Social Networks, Religion, and Confidence in Politics

Whereas correlational studies on the social outcomes of current economic recession show that the economic meltdown has affected the well-being of nations, micro-level studies untangling the causal mechanisms arrive at a rather slow pace. Based on social comparison insights, this paper departs from the idea that financial strain has a bearing on individual well-being in times of crisis. We further derive from existing theories that the impact of financial strain on well-being can be cushioned by social networks, religiosity, and confidence in politics, as well as the role of the welfare state. Analyzing the 2010 wave of the European Social Survey, this paper confirms that financial strain, questioned by three retrospective questions about resource stress, is inversely related with subjective well-being. A multilevel analysis on 25 European countries confirms that support from social networks, religious support and in particular confidence in politics are able to cushion the negative effect of financial strain on subjective well-being. Furthermore, we demonstrate that among the most deprived, social networks are of particular strong impact in bringing about happiness the less encompassing welfare states, whereas the role of religious support and confidence in politics are invariant across all countries studies. The results of the analysis are discussed in relation to social science research and public policy.