In this article, we examine the structure of the subjective well-being and its relation to objective well-being indicators using the data from the European Union’s Survey on Income and Living Conditions (EU-SILC) from Serbia. This is one of the first papers to analyze a new module on subjective well-being from EU-SILC micro-dataset (with over 20,000 respondents). We investigate the factor structure of the items and the differences in the association of subjective well-being dimensions with objective indicators of well-being within the Organisation for Economic Co-operation and Development Better Life Initiative framework. Three factors emerge from the principal components analysis: general life satisfaction, affective well-being, and satisfaction with the local environment. The analysis further reveals that life satisfaction is more related to the material living conditions, such as income, unemployment, and housing conditions, while affective well-being is more related to non-material indicators of well-being such as perceived health, personal security, and social connections. On the other hand, positive and negative affect within the affective well-being are not clearly separable, nor is the eudaimonic indicator from either life satisfaction or affective well-being.

In this paper, we investigate the child penalty in Russia using data from the Russian Longitudinal Monitoring Survey (RLMS) and the methodological framework of event studies. We find that five years after childbirth, women suffer an earnings penalty, while no effect is observed for men. The mothers’ penalty stems exclusively from lower employment after childbirth. Contrary to similar studies on Western Europe and the US, we do not find penalties in terms of working hours or hourly wage rates for women who remain in the labour force. We further find that mothers’ employment penalty is strongly driven by household characteristics and by their spouses’ beliefs. Finally, we find that parenthood decreases the probability of working in supervisory positions for mothers and in the public sector for fathers.

Background Although smoking prevalence and intensity in Serbia have decreased in recent years, expenditures on tobacco products still represent a significant portion of household budgets. As households have limited resources at their disposal, consuming tobacco means that they spend less on other items such as food, clothing, education and healthcare. This is particularly true for low-income households, for whom the pressure on the household budget is even higher. Objectives In this research we estimate the effect of tobacco consumption on other consumption items in Serbia, which is the first estimation of this type for the countries in Eastern Europe. Methods We use microdata from the Household Budget Survey and estimation approach that includes the combination of seemingly unrelated regression and instrumental variables. Besides estimating the overall effect we analyse the differences in effects between low-income, medium-income and high-income households. Results Expenditures on tobacco reduce consumption on food, clothing and education and increase the budget shares spent on complementary consumption items such as alcohol, hotels, bars and restaurants. In most cases, the effects are more pronounced for low-income households than for other groups. These results suggest that aside from the negative effects of tobacco consumption on health, it also distorts household consumption structure, while affecting intrahousehold allocation and future health and development of other household members. Conclusions The results from this research underline the negative effect that tobacco expenditures have on consumption of other products. The only way for households to decrease expenditures on tobacco is to stop smoking, as the consumption of those who continue smoking changes less than cigarettes prices. To ensure that households stop smoking and instead direct their expenditures towards more productive purposes, the Serbian government should adopt new policies and strengthen enforcement of existing tobacco control measures.