The Relationship between Subjective Well-Being and Objective Wealth: A Case in Indonesia
This thesis investigates what makes Indonesian people feel richer and happier with their life. It examines the relationship between subjective well-being and objective indicators of wealth in three different age groups. The main explanatory variable is objective wealth, captured by log of per capita...
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2011
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| Summary: | This thesis investigates what makes Indonesian people feel richer and happier
with their life. It examines the relationship between subjective well-being and
objective indicators of wealth in three different age groups. The main explanatory
variable is objective wealth, captured by log of per capita expenditure. Subjective
well-being as the dependent variable uses two proxies: subjective wealth and
happiness. The results showed consistency with previous studies, despite slight
differences across different age groups in terms of coefficient magnitudes. All age
groups showed similar determinants for subjective well-being. Higher expenditure
and higher education stimulate people to feel richer and happier. Married couple,
women and household with larger number of family members also reported a higher
level of subjective wealth and happiness. Higher expenditure is strongly inducing
people to feel richer but not instantly drive people�s happiness. It has significant
effect on happiness but not as strong as its effect on subjective wealth. |
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