Human Capital and Subjective Well-Being in Russia During Macroeconomic Shocks

Irina I. Semenova, Natalya R. Kelchevskaya, Irina S. Pelymskaya

Ural Federal University named after the First President of Russia B.N. Yeltsin, Yekaterinburg, Russia

Abstract

This article analyzes the impact of human capital and job quality on the life satisfaction of employed people in Russia during the macroeconomic shocks of 2014, 2020, and 2022. The relevance of the study lies in the fact that during periods of sanctions, pandemics, and geoeconomic fragmentation, the traditional focus of employment policy on job numbers and income levels proves insufficient: job quality, health, and subjective well-being play an increasingly important role. The aim of the study is to empirically assess the impact of human capital components (education, income, health) and job quality factors on the life satisfaction of employed people in Russia before and during the shocks. The initial hypothesis suggests that during periods of crisis, job quality and health become key factors of subjective well-being, while the role of income and education weakens. The empirical base includes RLMS-HSE panel data for employed respondents for 2012–2024. A hybrid ordinal logit model with a Mundlak decomposition is used to estimate within- and between-person effects and their changes during periods of shock. Job quality is measured using a factor analysis of thirteen indicators reflecting attitudes toward work, trust in employers, social security, job security, and career dynamics. According to the results, persistent differences in job quality and health contribute significantly more to the likelihood of high life satisfaction than income, while during periods of shock, the role of short-term earnings dynamics and job characteristics increases. The theoretical significance of the study lies in analyzing the impact of human capital components and job quality on subjective well-being using a hybrid panel model. Its practical significance suggests a reorientation of labor and employment policies from supporting employment and minimum incomes to improving job quality and institutionalizing the monitoring of subjective well-being.

Keywords

subjective well-being; human capital; wages; job quality; satisfaction; health; macroeconomic shocks

JEL classification

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Acknowledgements

The study was supported by the Russian Science Foundation grant No. 23-78-10165. rscf.ru/project/23-78-10165/

About Authors

Irina Igorevna Semenova

Research Assistant, Department of Economics and Management at Metallurgical and Engineering Enterprises, Ural Federal University named after the first President of Russia B.N. Yeltsin, Yekaterinburg, Russia (620002, Yekaterinburg, Mira street, 19); ORCID 0009-0007-0134-0698 e-mail: i.i.semenova@urfu.ru

Natalya Removna Kelchevskaya

Doctor of Economics, Head of the Department of Economics and Management at Metallurgical and Mechanical Engineering Enterprises, Ural Federal University named after the first President of Russia B.N. Yeltsin, Yekaterinburg, Russia (620002, Yekaterinburg, Mira street, 19); ORCID 0000-0001-7278-026X e-mail: n.r.kelchevskaya@urfu.ru

Irina Sergeevna Pelymskaya

Candidate of Economic Sciences, Associate Professor, Department of Economics and Management at Metallurgical and Mechanical Engineering Enterprises, Ural Federal University named after the first President of Russia B.N. Yeltsin, Yekaterinburg, Russia (620002, Yekaterinburg, Mira street, 19); ORCID 0000-0003-3624-2506 e-mail: i.s.pelymskaya@urfu.ru

For citation

Semenova, I.I., Kelchevskaya, N.R., Pelymskaya, I.S. (2026). Human Capital and Subjective Well-Being in Russia During Macroeconomic Shocks. Journal of Applied Economic Research, Vol. 25, No. 1, 222-248. doi.org/10.15826/vestnik.2026.25.1.008

Article info

Received November 27, 2025; Revised December 12, 2025; Accepted December 15, 2025.

DOI: http://dx.doi.org/10.15826/vestnik.2026.25.1.008

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