Good governance and subjective well-being in Europe: the mediating role of trust in other people and institutions

This paper investigates the determinants of subjective well-being in Europe during the Covid-19 pandemic using the European Living, Working and COVID-19 Survey carried out by Eurofound (2021). Particular attention is paid to how the quality of governance influences individual wellbeing through the mediation of trust in other people (interpersonal trust) and in the public institutions (institutional trust). To this end, we outline an index of quality of governance that considers the dimensions that characterize good governance and promote institutional and interpersonal trust. In particular, this index assesses both the competencies of the state, such as responsiveness and reliability, as well as the values of fairness and integrity. The findings show that the quality of governance has a positive impact on individual well-being, and that institutional and interpersonal trust play a primary role in enhancing the positive influence of public interventions. Finally, we examine the evidence in support of the claim that young people (18-34 year age group) tend to react differently to public interventions dealing with socio-economic distress by means of different channels of trust with respect to individuals over 34 years of age.