Life satisfaction and tax preferences in transition economies

In this work, we adopt the recent perspective that higher quality of life enhances individuals' civic engagement, making them more committed to societal well-being and more willing to contribute to improving the social and institutional environment. Specifically, focusing on transition economies, we examine the role of life satisfaction in shaping individuals' willingness to pay higher taxes to support public goods such as education, healthcare, aid for those in need, and efforts to combat climate change. Using data from the Life in Transition Survey, we find that individuals with greater life satisfaction are more inclined to contribute towards a range of public and common goods. These findings are robust across various sensitivity analyses and sample specifications. Our results underscore the significance of life satisfaction in fostering civic engagement and enhancing contributions to societal well-being