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IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.

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Trends, Influencing Factors and Political Relevance
IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel

Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Jennifer Potthoff / Rebecca Gabel German Economic Institute (IW) German Economic Institute (IW)

Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.

Young adults and retired people are particularly satisfied, while life satisfaction tends to decline in middle age, resulting in a typical ‘U-shaped curve’. Among the key factors influencing the level of contentment are income, age, employment status and an internal locus of control – the belief that the course of life can be influenced by one’s own actions. Those who are convinced that they have their life in their own hands report being considerably more content. Greater wealth increases life satisfaction, especially in the lower income brackets, while when it comes to employment, those working full- and part-time are significantly more satisfied than their marginally employed counterparts. Although the level of life satisfaction varies from region to region, the differences are moderate and the gaps are narrowing. Specific anxieties, such as concern about one's health or economic situation, have a significant impact on the level of contentment. Life satisfaction has now become a widely-researched, complementary indicator of prosperity. It is an important factor in shaping sustainable and resilient social policy and raising confidence in the efficiency of Germany’s social market economy.
 

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Trends, Influencing Factors and Political Relevance
IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel

Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Jennifer Potthoff / Rebecca Gabel German Economic Institute (IW) German Economic Institute (IW)

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A Behavioral Ethics Perspective
IW-Policy Paper No. 12 6. November 2025 Barbara Engels / Jennifer Potthoff

Social Media, Markets and Minors: A Behavioral Ethics Perspective

Social media has become a central infrastructure of adolescence, offering benefits such as social connection, informal learning, creative expression, and low-cost entrepreneurial opportunities, while simultaneously posing risks including depression, body image concerns, and opaque commercial persuasion.

Barbara Engels / Jennifer Potthoff IW

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IW-Trends No. 2 1. August 2025 Dominik Enste / Benedict Lorbacher

Anti-Foreign Bias in Germany: A Behavioural Economic Analysis of ist Relevance in Structural Change

While economists never cease to emphasise the overall prosperity gains for society as a whole that result from free trade and globalisation, critical attitudes towards globalisation and support for protectionist policies continue to grow in many Western countries.

Dominik Enste / Benedict Lorbacher IW

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