Trust and Happiness: Comparative Study Before and After the Great East Japan Earthquake
نویسندگان
چکیده
The positive relationship between trust and happiness is well documented in the well-being literature. However, it is not yet clear how much of this relationship is moderated across different environmental conditions. The Great East Japan Earthquake of 2011 is considered one of the most catastrophic events in human history. It caused not only severe physical damage for the Japanese people, but also significant perceived damage. Using individual-level panel data from Japan covering the period 2009–2012, this paper investigates how the Great East Japan Earthquake influenced the relationship between trust and happiness by comparing the same individuals’ subjective outcomes before and after the earthquake. A fixed effects regression shows that there is a statistically well-determined positive relationship between trust and happiness, and this relationship was strengthened by disaster, especially for the residents residing in the damaged area. We argue that social trust is a substitute for formal institutions and markets, and helps to mitigate some of the negative effects of disaster-related shocks on psychological well-being. Our conclusion is that a more trustful society is likely to be relatively more invulnerable than others during disasters of such gigantic proportions.
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