With or without you? Measuring the quality of relational life throughout the world

This paper proposes a new method for the measurement of the quality of relational life. Building on the recent literature on the determinants of subjective well-being, we use implicit valuations estimated from microeconometric life satisfaction equations to weigh scores on several dimensions of relational life. We apply the proposed method to a large sample of individuals from 94 countries, in order to construct composite indicators that focus on three dimensions of interpersonal relations: friends, family, and society. We use these indicators to compare the quality of relational life across countries worldwide and to explore its determinants at individual and country level. Overall, the results indicate that, at individual level, better economic conditions are associated with higher quality of interpersonal relationships.