Happiness Index: Determinants and Impact on Productivity and Income of Self-employed Workers in Indonesia

Articles in Press

Document Type : Research Paper

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Faculty of Economics and Management, Bogor Agricultural University, Bogor, Indonesia

10.22059/ier.2024.377173.1008021

Abstract

The purpose of this study is to look at the factors that affect the happiness of self-employed workers and their impact on productivity and income. The measurement of happiness uses 2 approaches, first using the measure of happiness used by Indonesia Central Bureau of Statistics (BPS), institutions conducting happiness surveys in Indonesia, and second, using a measure of happiness that accommodates Islamic values. Data were collected from 15 provinces that are included in the average happiness area based on the 2021 BPS happiness survey and involved 1121 self-employed workers who are Muslim and are of productive age. Data analysis using SEM-PLS. The results of data analysis show that there are differences in factors that influence happiness with Islamic values and BPS. Generous behavior, family, forgiveness, good deeds, gratitude, tadabbur and wealth are significant in both models but purifying oneself, patience and friendship are only significant in the BPS model. An important finding in this study is that happiness with Islamic values or BPS has an impact on productivity and income. In general, this study proves that religious behavior has an impact on the happiness of independent workers and this happiness has an impact on productivity which then affects income.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 October 2024

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