The Impact of Imports and Exports on a Country’s Quality of Life

This paper is a sequel to Sirgy et al. (Social Ind. Res. 68(3) (2004) 251), “The Impact of Globalization on a Country’s Quality of Life: Toward an Integrated Model” published in Social Indicators Research. That paper conceptualized globalization in terms of the free flow of four major components: (1) goods and services, (2) people, (3) capital, and (4) information. The current paper focuses on the free flow of goods and services, one of the four major components of globalization. Specifically, we (1) articulate the trade globalization construct, (2) show the complex mediating effects between trade globalization and QOL, and (3) describe under what conditions these positive vs. negative QOL effects are likely to occur. We develop a set of theoretical propositions to capture these mediating and moderating effects. Based on the theoretical model, we suggest the following public policy recommendations: (1) Encourage exporting firms not to outsource jobs. (2) Encourage firms to export more products in ways that can enhance their production efficiency. (3) Discourage firms from exporting culturally sensitive (and possibly offensive) products to culturally distant countries. (4) Encourage firms to export more products with potential for technology transfer. (5) Encourage firms in industries with a significant comparative advantage to increase exports. (6) Encourage imports of products that do not compete with high employment domestic industries where workers cannot easily transition to more productive employment. (7) Impose trade barriers as short-term solution to help␣threatened industries while helping those industries retool to become more competitive. (8)␣Assist displaced workers by re-training them to shift to industries with comparative advantage.     

Are Happier People More Willing to Make Income Sacrifices to Protect the Environment?

There is considerable amount of debate about the effect of affluence on environmental concern. The empirical literature is inconclusive on this debate. Increasingly, more studies are examining individual level correlates of environmental concern. On the other hand, a large number of studies examine the correlates of happiness. An important aspect of the economics of happiness literature emphasizes the relationship between environmental quality or concern and happiness. A few scholars suggest that happiness may influence environmental concern. Yet studies on whether happiness affects environmental concern are lacking. This paper empirically investigates the effect of happiness on environmental concern in a cross-national sample. Using data for 18 countries, I find that happier people are more willing to make income sacrifices to protect the environment. This finding holds for residents of both African and developed countries.     

How Education Enhances Happiness: Comparison of Mediating Factors in Four East Asian Countries

Educational philosophers contend that education enhances autonomy and thus happiness, but empirical studies rarely explore the positive influence of education on happiness. Based on the previous finding that being better connected to the outside world makes people happy, this study examines the possibility that how well an individual connects to the world accounts for the positive association between education and happiness. Analyzing survey data from four East Asian countries, we find a common pattern among Japan, Taiwan and South Korea. Although both monetary and non-monetary factors play a role in explaining the relationship between education and higher reports of happiness, monetary factor is relatively unimportant whereas non-monetary factors, such as interpersonal network and degree of cosmopolitanism, account for a significant part of the association between education and happiness. China is exceptional due to its relative importance of personal income in accounting for happiness. In short, individuals who receive more education have more extensive social networks as well as greater involvement with the wider world; these life conditions are positively related with happiness. By enhancing one’s ability and propensity to connect with the wider social world, education may improve an individual’s subjective well-being.     

Does Good Governance Enhance Happiness: A Cross Nation Study

The purpose of this paper is to analyze the efficiency of the countries over the period of 10 years by applying data envelopment analysis (DEA). Based on rational and factual parameters such as freedom of press, freedom of religion, percentage of export in Gross Domestic Product (GDP), index of globalization, life expectancy at birth, gender ratio etc., this paper attempts to measure the efficiency of happiness. A combination of social and economic factors has been used to measure technical efficiency. The contribution of this paper is twofold. First, it measures the relative efficiency of all the countries included in the study. The nations have been ranked as per their relative efficiency and the peer group has been formed. Second a comparison between the rich and the poor countries have been done to test empirically whether the economic growth enhances the happiness among people. Presently, more than 3,000 studies have been published on happiness and Veenhoven in 2004 created a database called World Database of Happiness. The World Database of Happiness has attempted to present the available research findings on happiness. Part of the findings on happiness in nations is available in ‘States of nations’. For the research purpose, States of Nations and the data published by have been considered. Although happiness has been quantified and the existing literature has sufficient empirical evidences of the same, in the present context, the relative efficiency has been calculated for the countries on basis of objective and subjective happiness parameters. As per the literature, happiness has two aspects (1) objective and (2) subjective. Objective parameters are external to the individuals and covers material living parameters viz. GDP growth, income, nutrition, mortality rate, literacy etc. However, Subjective indicators measure the quality of life of the individuals. These are summarized as ‘‘subjective well-being’’. The various parameters considered in the study capture different aspects of happiness. The result shows how the government can increase the happiness of the people by analyzing the behavior and expectations. People express their preference explicitly about political parties, religion believes, law and order situation, trust in official institutions etc. Although, the behavior of people largely depends upon availability of goods and services in the market, the government can make budgets according to priority or preferences of people. Another way to increase happiness can be done by analyzing the peer group, which is an outcome of DEA. This shows the nations which are similar in terms of their economic and social conditions. The government can compare the prevailing conditions in different countries that improve the condition in their respective country. This could be an effective method as some of the parameters can be replicable in order to make people happier. The limitation of this study is lack of availability of data for many countries. As the number of countries increases, a change in the relative efficiency can be observed. Therefore, a future study can be conducted where the relevant data can be collected and a more global result can be obtained.     

What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys

The issue of what determines subjective well-being has been at the centre of a recent flurry of research in the economics field. A necessary part of this understanding is the role relative positions (economic, social, geographic) of economic agents, particularly individuals, play in life (commonly referred to in the literature as rivalry). In this paper, we concentrate on whether the structure of happiness equations of South Africa are the same/similar to those of developed countries. The analysis uses three of the Durban Quality of Life Studies. Firstly these three data series are pooled and a variety of covariates are tested for their significance on happiness. These include age, marital status, employment status, household income and relative household income. Next we estimate yearly cross-sectional models to see if there are consistent findings of what determines happiness across the period considered. Our findings indicate there may be some structural differences between results from the Durban studies and those of international findings. Age appears to play no role in happiness likelihood, nor does marital status. Being unemployed does significantly and negatively effect happiness as does the size of household income, relative household income and whether living in a formal dwelling place. When we distinguish between employment categories we find that being self-employed negatively affects happiness, contradicting findings for developed countries. The authors wish to thank members of the Department of Economics, University of the Witwatersrand, participants at the 10th African Econometric Conference, Nairobi 2005 and International Society of Quality of Life Studies, Grahamstown South Africa 2006 as well as one anonymous referee for helpful comments on earlier drafts of this paper.     

Translating Idea into Reality? A Q-Methodological Investigation of Chinese Local Officials’ Response to the Initiative of a Happiness Index

This research attempts to provide insights into the extent to which the novel idea of happiness indices has been translated into reality, a topic that arguably remains under-explored in happiness studies. In particular, we focus on local reform participants’ response to the idea of using individuals’ happiness to guide the process of policy-making. Using the official effort to establish a happiness index in Guangdong as a unique case (a southern province in China), we investigated two interrelated questions: (1) to what extent do reform participants identify with the arguments legitimating happiness-inspired reforms? (2) How do they understand the values of the new measurement system? Q methodology was used to reveal local officials’ (N = 22) subjectivity towards a series of tenets and assumptions associated with happiness indices and the actual implementation of this particular idea in their departments. The results suggested two particular patterns within the viewpoints held by the informants: a realist perspective and a progressive optimist perspective. In spite of minor differences, the two perspectives shared much common ground: both recognized the normative values of happiness indices in general, but expressed a great deal of suspicion as to the validity of self-reported happiness. Moreover, they were either neutral or suspicious towards the positive statements about the actual implementation of happiness-inspired reform in the province and its substantive impact.     

Globally Happy: Individual Globalization, Expanded Capacities, and Subjective Wellbeing

Deep integration of Asia into the global society necessarily affects wellbeing of local populations. This study proposes a notion of ??extend capacities?? to explain the relationships between individual globalization and subjective wellbeing among Asian populations in a context of increasing global integration. Using Amartya Sen??s theory of human capacities as a point of departure, we advance a distinctive list of expanded capacities, which includes English ability, global exposure and foreign contacts via jobs. Empirical findings from our multilevel analysis of a large sample from 14 Asian countries show the consistent impact of mastering a global lingua franca on job satisfaction, perceived life accomplishment, and happiness. Global exposure also generates some favorable influences.     

经济全球化影响劳动就业的机理分析

经济全球化浪潮正以前所未有的方式和速度影响着人们的就业。经济全球化的直接含义是国际分工 ,因此在比较优势作用下不断扩展的国际贸易、资本的跨国流动以及由此推动的全球产业结构调整成为经济全球化影响劳动就业的途径。     

Determinants of Subjective Well-Being and Poverty in Rural Pakistan: A Micro-Level Study

Drawing on unique survey data for rural Pakistan, we investigate the impact of socio-demographic factors on happiness index with particular emphasis on subjective well-being measurement to evaluate poverty and its different components. The data elicits information on overall well-being in terms of household’s happiness with the current socio-economic status. We estimate a happiness model to explore to what extent a well-being perspective adds to our understanding of poverty. We find that the well-being approach closely depicts the idea of well-being poverty in terms of the level education, health and income which matter significantly. Moreover unlike developed nations where children have a negative impact on overall well-being, this study suggests a positive impact on well-being and poverty. As studies employing good data from developing countries are rare, this paper can potentially make a good contribution to the existing happiness literature, with special reference to Pakistan.     

The Impact of Economic Crisis on Happiness

There is a common belief that economic crisis will lead to a decrease in subjective wellbeing. Previous studies indicate that income is correlated with happiness and unemployment with unhappiness. The relationship between increased income and happiness is well documented while the impact of decreased income has been less explored. The aim of this paper is to study how the economic downfall in Iceland, followed by reduced income and increased unemployment, affects happiness as well as to explore which groups are most vulnerable to changes in happiness and which are most resilient. The study is a longitudinal, nationally representative postal survey which assessed 5,918 individual’s aged 18–79. A total of 4,092 (77.3%) answered again in 2009. The relationship between economic factors and happiness was explored using multiple linear regression to find out how much they explain of the happiness variance and the changes in happiness, together with demographic factors, health and social relationships. Results indicate that income and unemployment did not predict happiness but financial difficulties did. A decrease in happiness was detected after the collapse. The change in happiness from 2007 to 2009 was normally distributed, 40% had the same score in both years and an equal number increased as decreased. The explored factors did not explain the changes in happiness. The economic crisis had a limited affect on happiness. Those with financial difficulties were hardest hit. Changes in happiness need to be studied further since they are not well explained by the factors which influence cross-sectional levels of happiness.     

Does Education Affect Happiness? Evidence for Spain

In this paper we study the impact of education on happiness in Spain using individual-level data from the European Social Survey, by means of estimating Ordinal Logit Models. We find both direct and indirect effects of education on happiness. First, we find an indirect effect of education on happiness through income and labour status. That is, we find that people with a higher education level have higher income levels and a higher probability of being employed, and thus, report higher levels of happiness. Second, and after controlling by income, labour status and other socio-economic variables, we find that education has a positive (and direct) impact on happiness. We interpret this result as evidence of a ??self-confidence?? or ??self-estimation?? effect from acquiring knowledge. Finally, we find that the direct impact of education on happiness does not depend of the level of education (primary, secondary or tertiary).     

Suicide and happiness: Seven tests of the connection

Indirectly, this paper examines the empirical connections between suicide and happiness by looking at the connection of each with seven standard demographic characteristics. They are sex, age, race, parental status, marital status, religiosity and employed status. These seven are chosen because a lot of data are available. We then examine the relationship of these same seven variables to suicide. Our findings indicate that marital status, religiosity and employment status have a (predicted) similar effect on suicide and happiness. Parenthood has an unclear relationship with suicide and happiness. Finally, sex, age and race have dissimilar effects on suicide and happiness. On the basis of this admittedly preliminary analysis, it would be impossible to conclude that happiness and suicide are closely (if inversely) related. First, there is the chance that suicides or happiness levels have been systematically misreported. Second, there may be a problem with our lumping together happiness and satisfaction. Third, there may be a problem with the seven particular independent variables we examined. Had we examined a different seven (or seventy) we might have drawn a different conclusion. In particular, we might have done better with comparative (or cognitive) variables derived from multiple discrepancies theory (MDT), than with demographic ones. In the end, the connection between happiness and suicide is far from certain. More research is needed.     

A Conceptual-Referent Theory of Happiness: Heterogeneity and its Consequences

This paper puts forward The Conceptual Referent Theory of Happiness (CRT), which states that a person’s conceptual referent for a happy life plays a role in the judgment of her life and in the appraisal of her happiness. A typology of eight conceptual referents for happiness is made on the basis of a review of philosophical essays on happiness.The theory contributes to the understanding of happiness by focusing on a cognitive factor involved in the judgment process: A person’s notion of what a happy life is, of what she understands for being well. Thus, CRT complements previous research by studying what a person thinks, rather than what she feels, at the time of appraising her life. CRT also stresses the importance of heterogeneity; this is: the conceptual referent is not the same for every person; people have different conceptions of what a happy life is. Hence, the investigation studies the issue of superiority in the conceptual referent for happiness. It shows that no conceptual referent can be considered as superior in the sense of being associated to greater happiness. However, there are a few conceptual referents that are clearly inferior. The investigation also studies the influence of socioeconomic and demographic variables in the conceptual referent a person holds. It shows that the probability of embracing a particular conceptual referent for happiness is contingent on a person’s socioeconomic and demographic situation. The empirical investigation is based on data from a large survey applied in Mexico.     

Did the Decline in Social Connections Depress Americans’ Happiness?

During the last 30 years US citizens experienced, on average, a decline in reported happiness, social connections, and confidence in institutions. We show that a remarkable portion of the decrease in happiness is predicted by the decline in social connections and confidence in institutions. We carry out our investigation in three steps. First, we run a happiness regression that includes various indicators of social connections and confidence in institutions, alongside with own income, reference income, and the usual socio-demographic controls. We find that indicators of social connections and confidence in institutions are positively and significantly correlated with happiness. Second, we investigate the evolution of social connections and confidence in institutions over time, finding that they generally show a declining trend. Third, we calculate the variation in happiness over time as predicted by each of its statistically significant correlates, finding that the decrease in happiness is mainly predicted by the decline in social connections and by the growth in reference income. More precisely, the sum of the negative changes in happiness predicted by the reduction in social connections and the increase in reference income more than offsets the positive change predicted by the growth of household income. Also, the reduction in happiness predicted by the decline in confidence in institutions is non-negligible, although substantially smaller than the one predicted by either social connections or reference income.     

Avowed happiness as an overall assessment of the quality of life

The concept of happiness has been mistakenly identified with feelings of pleasure in recent studies of quality of life. This paper clarifies the meaning of the concept ‘happiness’ and establishes grounds for its proper use in scholarly research. In addition, an empirical test of four major accounts of happiness derived from a careful review of philosophical and empirical literature is undertaken to propose a theory of happiness. The theory suggests that happiness is primarily a product of the positive assessments of life situations and favorable comparisons of these life situations with those of others and in the past. The various personal characteristics of an individual and the resources in his command, such as sex, age and income, influence happiness mostly through their effects upon the two psychological processess of assessment and comparison.     

The Influence of Water Access in Subjective Well-Being: Some Evidence in Yucatan, Mexico

The literature on happiness or subjective well-being has explored the determinants of happiness without taking into consideration the role that water plays. In this paper we attempt to draw attention to water in subjective well-being studies. Approximately one hundred million people do not have access to water. A lack of clean water causes diseases such as diarrhea and cholera, responsible for around 5% of the total deaths in the world. Access to water should therefore be a necessary asset in life. In order to consider access to water, we estimate its influence on subjective well-being using data from rural Yucatan, Mexico. Residents in Yucatan suffer from low quality access to water and there are also imperfections in the management of the service, such as water cuts. We estimate the influence of water on subjective well-being, finding a positive and significant relationship. In a second stage of the research, we relate water access variables to subjective well-being, the health and the water domain of life, finding significant results. These results make it possible to formulate political measures concerning access to water and happiness maximization. We demonstrate that access to water is important for well-being in Yucatan and might be important in many other places; we therefore encourage future research to contemplate water satisfaction and water variables in their analysis.     

Happiness Inequality: How Much is Reasonable?

We compute the Gini indexes for income, happiness and various simulated utility levels. Due to decreasing marginal utility of income, happiness inequality should be lower than income inequality. We find that happiness inequality is about half that of income inequality. To compute the utility levels we need to assume values for a key parameter that can be interpreted as a measure of relative risk aversion. If this coefficient is above one, as many economists believe, then a large part of happiness inequality is not related to pecuniary dimensions of life.     

Socio-Economic Inequalities in Happiness in China and U.S.

Our paper studies the determinants of happiness in China and U.S. and provides a better understanding of the issue of inequalities in happiness beyond income inequality. Based on the two waves of nation-wide survey data on happiness collected by World Values Survey in 1995 and 2007, Probit and ordinary least square methods are used to estimate effects of various factors on happiness. Our findings show that socio-economic inequalities increase inequalities in happiness in China. The poor are the least happy even though the income effect flats out at the high end. Individuals with below high school education attainment are less happy than those with more education. Agricultural workers are the most unhappy and are becoming even more unhappy over time. However, in U.S., there is no systematic difference in happiness across income and education groups and between agricultural and non-agricultural workers. In both countries health is a major factor contributing to happiness. Our study implies that adequate provision of national health care services should be an effective way to improve social welfare. Besides, since the probability of being happy for agricultural workers is still considerably less after controlling for income in China, policies to improve their welfare should not be limited to enhancing current income.     

影响牧区牧民幸福感因素的实证研究——天祝藏族自治县调查报告

改革开放以来。我国经济建设取得了辉煌成就,目前,部分地区甚至一些大城市的人均收入已赶上发达国家．但其总体幸福水平不尽人意。相反,有调查显示收入水平明显大幅度低于城市居民的农民。其生活满意感超过了城市居民。出现了“幸福悼论”现象。本文依据贫困牧区县的调查资料,运用ordered logit model对牧民幸福感同收入及若干非经济因素之间关系的维度和强度进行了考量。在假定牧区宗教及文化习俗对牧民的幸福感均有恒定影响的前提下,分析结果显示．牲畜数量是牧民的主要幸福源泉;牧区女性的幸福感要明显低于男性;牧民收入水平尚较低的情况下。人均年收入同幸福感显著正相关;牧民自身的教育投入对幸福感的提高起抑制作用：以30岁为拐点．牧区成年人和老年人的幸福感相对低于青年人;遇到资金周转困难时,银行对牧民家庭的贷款有助于改善幸福状况：物质条件对幸福感不具有明显的影响。     

A global perspective on happiness and fertility

The literature on fertility and happiness has neglected comparative analysis. We investigate the fertility/happiness association using data from the world values surveys for 86 countries. We find that, globally, happiness decreases with the number of children. This association, however, is strongly modified by individual and contextual factors. Most importantly, we find that the association between happiness and fertility evolves from negative to neutral to positive above age 40, and is strongest among those who are likely to benefit most from upward intergenerational transfers. In addition, analyses by welfare regime show that the negative fertility/ happiness association for younger adults is weakest in countries with high public support for families, and the positive association above age 40 is strongest in countries where old-age support depends mostly on the family. Overall these results suggest that children are a long-term investment in well-being, and highlight the importance of the life-cycle stage and contextual factors in explaining the happiness/fertility association.