Abstract
The aim of this paper is to analyse the effect of COVID-19 on multidimensional well-being in the European population aged 50 and over by measuring changes in individual well-being before and after the pandemic outbreak. To capture the multidimensional nature of well-being, we consider different dimensions: economic well-being, health status, social connections and work status. We introduce new indices of change in individual well-being that measure non-directional, downward and upward movements. Individual indices are then aggregated by country and subgroup for comparison. The properties satisfied by the indices are also discussed. The empirical application is based on micro-data from waves 8 and 9 of the Survey of Health, Ageing and Retirement in Europe (SHARE), carried out for 24 European countries before the pandemic outbreak (regular survey) and in the first two years of the COVID-19 pandemic (June-August 2020 and June-August 2021). The findings suggest that employed and richer individuals suffered greater losses in well-being, while differences based on gender and education diverge from country to country. It also emerges that while the main driver of well-being changes in the first year of the pandemic was economics, the health dimension also strongly contributed to upward and downward well-being changes in the second year.