Life satisfaction and the economic and social characteristics of neighbourhoods

This paper uses data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey to investigate the association between neighbourhood effects and life satisfaction. We find that neighbourhood measures of social support and interaction and the absence of socio-economic deprivation are positively and significantly correlated with individual life satisfaction. Neighbourhood fixed effects, however, explain only an additional 1.5 to 2.5% of the variance in life satisfaction over the 14% explained by individual characteristics.

The relevance of social interactions on housing satisfaction

For most individuals, housing is the largest consumption and investment item of their lifetime and, as a result, housing satisfaction is an important component of their quality of life. The purpose of this paper then is to investigate the determinants of individual housing satisfaction as a particular domain of satisfaction with life as a whole, examining the effects of individual and household attributes (predictive), housing characteristics (hedonic), and more importantly, of social interactions originated in one's residential neighbourhood. To do so, we model housing as a composite commodity that satisfies dwelling needs, as well as other intangibles such as familiar relationships and socio-status aspects. We use the Survey of Living Conditions and Poverty (Spain). Specifically, using a self-reported measure of housing satisfaction, we estimate ordered probit models searching for the empirical specification that provides the best fit accounting for divergences driven by aspirations defined in the own household (internal norm), and by social comparisons (peer-effect or external norm).

Life Satisfaction and Happiness in Turkey

This research aims to investigate life satisfaction and happiness in Turkey. It extends the previous researches on subjective well-being (SWB) for Turkey by considering both happiness and life satisfaction. The previous researches for Turkey are local studies, and their findings cannot be generalized to the population of Turkish society. Given these facts, the factors that shape individual happiness and life satisfaction amongst Turkish people are determined using a representative survey of sociocultural and political change, World Values Survey (WVS). Some results obtained in this study are similar to typical findings such as a negative age effect, positive influences of income and health status, and a negative effect of unemployment. Contrary to the expectations, middle education has a negative direct effect on life satisfaction among females, and the upper education level is insignificant in the life satisfaction model. By comparing the correlates of happiness and life satisfaction across different years, this research aims to provide insights for policy makers and professionals to improve the perceived lives of Turkish people.

The Quality of Life in Japan

This study is part of a collaborative project examining the quality of life in Confucian societies in Asia. Our major findings suggest that, when our sixteen specific life domains are grouped into three life spheres, namely, material, post-material, and public, the Japanese people tend to be most satisfied with the post-material sphere of life and least satisfied with the public sphere of life such as the condition of environment and welfare system. In searching the direct, independent effects of demographics, lifestyles, value priorities, and domain assessments on the quality of life, none of the public life domain assessments shows a significant impact on the quality of life, while friendships and spiritual life in the post-material sphere of life are an important determinant. Equally notable is the finding that neither educational attainment nor household income contributes significantly to the experience of subjective well-being. Leading a global lifestyle also affects positively the quality of life. Finally, being married and satisfaction with marital life appear to be powerful and prevalent influence on the quality of life in Japan.

The Quality of Life in Hong Kong

The AsiaBarometer of 1,000 respondents shows that Hong Kong people have a great desire for materialistic attainment, and such an emphasis on materialism bodes ill for their quality of life. Negative assessments of the public life sphere, which encompasses the natural environment, the social welfare system, and the democratic system, also detract from the experiences of happiness, enjoyment, and accomplishment in Hong Kong. Surprisingly, access to digital communication devices helps Hong Kong people to experience a greater quality of life.

Life Goals Matter to Happiness: A Revision of Set-Point Theory

Using data from the long-running German Socio-Economic Panel Survey (SOEP), this paper provides evidence that life goals matter substantially to subjective well-being (SWB). Non-zero sum goals, which include commitment to family, friends and social and political involvement, promote life satisfaction. Zero sum goals, including commitment to career success and material gains, appear detrimental to life satisfaction. Finding that conscious life goals matter can potentially make an important contribution to SWB theory. The most widely accepted theory—set-point or dynamic equilibrium theory—essentially claims that set-points are near-automatic consequences of hereditary characteristics, including personality traits. Life goals play no role in these theories and major life events are viewed as having only a transitory effect. The SOEP panel data show that, over a 15–20 year period, non-trivial minorities record substantial changes in their set-points. This paper shows linkages between these changes and (a) the personality traits of extraversion, neuroticism and internal locus of control and (b) choice of life goals.

The Quality of Life in South Korea

The AsiaBarometer survey of 1,023 respondents shows Life in Korea is highly modernized and digitalized without being much globalized. Despite the modernization and digitalization of their lifestyles, ordinary citizens still prioritize materialistic values more than post-materialistic values, and they remain least satisfied in the material life sphere. A multivariate analysis of the Korean survey reveals that their positive assessments of their standard of living and marriage are the most powerful influences on the quality of life they experience. Remarkable improvements in the objective conditions of life for the past three decades have failed to transform Korea into a nation of well-being.

Personal Values as Mitigating Factors in the Link Between Income and Life Satisfaction: Evidence from the European Social Survey

Using data from the first two rounds of the European Social Survey, we examine the link between income, reference income and life satisfaction across Western Europe. We find that whilst there is a strong positive relationship between income and life satisfaction, reference or comparison income exerts a strong negative influence. Interestingly, our results confirm the importance of personal values and beliefs not only as predictors of subjective well-being, but also as mitigating factors in the relationship between income, reference income and life satisfaction. While our findings provide additional empirical support for the relative utility hypothesis, they are also consistent with Rojas’ (J Econ Psychol 28:1–14, 2007) Conceptual-Referent-Theory (CRT), which is based on the premise that the salience of income and comparison income depends on one’s intrinsic values and personal beliefs.

Cross-National Variation in Individual Life Satisfaction: Effects of National Wealth, Human Development, and Environmental Conditions

This study adds to the literature on subjective well-being and life satisfaction by exploring variation in individual life satisfaction across countries. Understanding whether and how individual life satisfaction varies across countries is important because if the goal of development is to increase well-being, we must identify the causes of well-being in different national and regional contexts. Using hierarchical linear modeling techniques, I test the hypothesis that individual well-being does vary across countries, and that national wealth, human development and environmental conditions explain this variation. I also test whether the effects of individual characteristics on life satisfaction (including age, marital status, education, income, employment status, and sex) vary across countries, and which country level characteristics explain these variations. Using individual level data from the World Values Survey, I find that there is significant variation in life satisfaction across countries. There is also significant variation in the slopes of individual predictors of life satisfaction across countries and regions. Regional differences in the effects of individual characteristics on life satisfaction explain most of the between country variation in life satisfaction. This indicates that universal development indicators may not adequately reflect differences in life satisfaction across countries, and that development measurements should better reflect regional differences.

Structural Equation Modeling (SEM) for Satisfaction and Dissatisfaction Ratings; Multiple Group Invariance Analysis Across Scales with Different Response Format

The current study evaluates three hypothesized models on subjective well-being, comprising life domain ratings (LDR), overall satisfaction with life (OSWL), and overall dissatisfaction with life (ODWL), using structural equation modeling (SEM). A sample of 1,310 volunteering students, randomly assigned to six conditions, rated their overall life (dis)satisfaction and their (dis)satisfaction with six different life domains. Each condition used one of six response formats, differing in (1) orientation (horizontal vs. vertical), and (2) anchoring (0 to 10, −5 to +5, and Not numbered). The results of a confirmatory factor analysis (CFA) support a six-factor model of LDR based on satisfaction or dissatisfaction items. However, our findings indicate that the kind of response format used to obtain satisfaction and dissatisfaction ratings can affect the factor loadings. Our results indicate that the proposed models of OSWL, and ODWL fit the data well, and are able to predict OSWL and ODWL, respectively. Moreover, among six life domains, which figure as the latent variables in our models, psychological well-being was found to be the strongest predictor of both OSWL and ODWL.

Quantifying the costs of drought: new evidence from life satisfaction data

We estimate the cost of droughts by matching rainfall data with individual life satisfaction. Our context is Australia over the period 2001 to 2004, which included a particularly severe drought. Using fixed-effect models, we find that a drought in spring has a detrimental effect on life satisfaction equivalent to an annual reduction in income of A$18,000. This effect, however, is only found for individuals living in rural areas. Using our estimates, we calculate that the predicted doubling of the frequency of spring droughts will lead to the equivalent loss in life satisfaction of just over 1% of GDP annually.

Ways by which Comparable Income Affects Life Satisfaction in Hong Kong

Proponents of social equality attribute low life satisfaction to income inequality in society, an inequality which occurs when most people have relatively low income and only a few have high income. In contrast, range-frequency theory and other social comparison theories predict that when most people have low income, they are satisfied because of the absence of relative deprivation among themselves. This prediction essentially suggests that that the size of the group of individuals with comparable income (i.e., income parity) sustains their life satisfaction. This theoretical prediction, however, does not consider their desire to be distinctive. By incorporating the notion of optimal distinctiveness, the size of income parity may have a quadratic effect on the individual’s life satisfaction. This is a hypothesis that receives support from the present study in Hong Kong, China. The study finds a saddle point of income parity size associated with the lowest life satisfaction, other things being equal. Furthermore, middle-income individuals have income parity size equal to or above this saddle point. They would have higher life satisfaction with increased income parity size, which therefore leads to a more enlarged income inequality. Others, however, may have higher life satisfaction with reduced income parity size. Hence, reducing income inequality would have mixed effects on people with different levels of income.

Sustainable Housing in the Urban Context: International Sustainable Development Indicator Sets and Housing

Housing, an essential aspect of quality of life, is also significant for sustainable development (SD). All of the major international statements on SD refer to housing or settlement strategies. However, indicator sets derived from these statements often fail to include good indicators of sustainable housing. This article outlines the conceptualisation of SD and housing from the international statements. It proceeds by describing the international indicator sets which have been constructed based on these policy statements. International organisations such as the United Nations Commission on Sustainable Development (UNCSD), the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU) have all produced indicator sets. However, this article contends that housing is an underdeveloped indicator and calls for more attention to be paid to the importance of aspects of housing for SD and the measurement of progress towards it via social indicators.

Parallels Between Objective Indicators and Subjective Perceptions of Quality of Life: A Study of Metropolitan and County Areas in Taiwan

This study explores the consistency between objective indicators and subjective perceptions of quality of life in a ranking of survey data for cities and counties in Taiwan. Data used for analysis included the Statistical Yearbook of Hsiens and Municipalities and the Survey on Living Conditions of Citizens in Taiwan, both given for the year 2000. The Quality of life was examined in seven domains: medical services, domestic finances, work, education, leisure, public safety, and environmental quality. Subjective and objective rankings for each domain of quality of life for 23 areas (some areas are cities and some are counties) are compared. Analysis by means of nonparametric correlation coefficients indicates that there is no significant correlation between objective indicators and subjective perceptions, except in Education and Environmental Quality. Objective indicators of Environmental Quality (air pollution and garbage) are positively correlated with subjective satisfaction with residential environment. But inexplicably, higher levels of literacy and educational achievement are negatively correlated with satisfaction with the educational system. It may be considered that disparity in either average objective conditions or in average subjective perceptions may not adequately depict quality of life differences.

The Non-Economic Quality of Life on a Sub-National Level in South Africa

Most research on the non-economic quality of life have been (a) on a national level or performed on cross-country comparisons, and/or (b) used subjective indicators to measure how people perceive their non-economic quality of life. In this paper, our main contribution is to construct objective indicators of the non-economic quality of life for 354 sub-national magisterial districts in South Africa. We also compare changes in these indicators over time, and consider methodological issues in the construction of objective indicators of non-economic quality of life. We find that although income does matter for the overall quality of life, non-income components of the quality of life can make an important difference. We find a number of places with low incomes that have been able to achieve higher than expected outcomes in terms of the non-economic quality of life, and that some of the relative income poor areas have improved their non-economic ranking between 1996 and 2004. We also find that the geographical/environmental quality of life in South Africa is better in non-urban areas, where fewer of the country’s population is residing. Significant improvements in the overall quality of life may be achieved through improvements in the urban natural environment.

A Note on the Dimensionality of Quality of Life Scales: An Illustration with the Satisfaction with Life Scale (SWLS)

A case is made that measures used in quality of life and happiness research will be essentially unidimensional: inherently tapping minor dimensions. This is illustrated using Diener’s Satisfaction with Life Scale (SWLS). It is shown that the SWLS does not meet the standard of strict unidimensionality, but that the interpretation of the total scale score is not compromised because the additional dimensions are relatively minor. In the context of the example, a multi-step strategy is described that allows researchers to test for essential unidimensionality. Throughout the article, essential unidimensionality is contrasted with the received view of strict unidimensionality and confirmatory factor analysis methods.

Subjective Well-being Among Young People in Transition to Adulthood

This study used a nationally representative sample of young people in Germany from the German Socio-Economic Panel to examine how demographic and socio-economic characteristics of the young persons and their parents, personality traits of the young persons, quality and quantity of relationships, the parent's level of life satisfaction, and other measures of satisfaction for the young person are related to the initial assessment of life satisfaction by the individual at the critical point of transition from adolescence to adulthood. The results indicated that consistency existed across different domains of satisfaction, specifically satisfaction with life and satisfaction with grades. A strong pattern of association was also observed between the subjective well-being of the adolescents and variables that measured different dimensions of the quality and quantity of interpersonal relationships, including relationships with parents.

Avowed Happiness in Confucian Asia: Ascertaining its Distribution,Patterns, and Sources

This study reviewed three philosophical accounts of happiness, and then tested those accounts with the Asiabarometer surveys conducted in six Confucian societies during the summer of 2006. Statistical analyses of these surveys reveal that East Asians tend to experience happiness to a greater extent when they experience enjoyment together with achievement and/or satisfaction. The preponderance of such multi-dimensional conceptions in all those societies poses a direct challenge to a single dimensional account of happiness in the West. The analyses also reveal that positive assessments of interpersonal relationships matter more than the amount of knowledge or wealth in living a happy life in Confucian societies.

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Life expectancy, money, and growth

We examine the effect of an increase in life expectancy on portfolio choices of individuals and, thereby, on economic growth in a simple endogenous growth model populated by overlapping generations, in which money is introduced based on the money-in-the-utility-function approach. It is shown that an increase in longevity raises the balanced growth rate and lowers the inflation rate, offsetting the Tobin effect, if spillovers from accumulated capital to labor productivity sufficiently raise wage income and real savings, and, if not, it may retard economic growth and aggravate inflation. Under plausible conditions, the former will be the case.