What Affects Individual Happiness in Indonesia? Evidence from Indonesia Family Life Survey

Authors

1 Sekolah Tinggi Ilmu Ekonomi KBP, Kota Padang, West Sumatera, Indonesia 25173

2 Directorate of Macro Planning and Statistical Analysis, Bappenas, Jakarta, Indonesia 10310; Learning-Up Institute, Bandar Lampung, Lampung, Indonesia 35132

3 Development Economics Department, Faculty of Economics and Business, UPN “Veteran” Yogyakarta, Sleman, DIY, Indonesia 55281

Abstract

Despite many studies on factors affecting individual happiness, the relationship is still unquestionable. By employing panel data sources from Indonesia Family Life Survey (IFLS) wave 4 (2007) and wave 5 (2014), we investigate the effect of income, education, health, social capital, and religiosity as well as individual characteristics and demographics on individual happiness in Indonesia. Several interesting findings from the random effects ordered probit estimations are as follows; income, education, and health strongly encourage individual happiness. Social capital, such as safety and participation in general elections, can provide more happiness. Persons in urban areas have higher happiness when participating in religious activities. Worship obedience can enhance individual happiness. Age has a U-shaped relationship to happiness, the male gender has lower happiness than the female, and people who are married, live in urban areas, and are outside Java Island have higher happiness than others.

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