Subjective Well-Being,Poverty and Ethnicity in South Africa: Insights from an Exploratory Analysis

South Africa has one of the highest inequality levels in the world. In 1993, nearly half of the population were considered poor. These poverty and inequality levels were and still are a legacy of South Africa’s colonial and apartheid past. Since the end of apartheid, there has been a strong governmental effort to combat poverty and in this light a ‘social indicators movement’ has emerged. The aim of this article is to contribute to the South African social indicators research in three ways: Firstly, this article introduces ethnicity as a unit of analysis in the context of poverty and well-being. It is argued that racial categorisations are not justifiable and in the case of South Africa hide valuable insights. The results of an exploratory analysis suggest that ethnicity allows a more insightful analysis of poverty and well-being than race. Secondly, this article introduces a multiple correspondence analysis (MCA) in the context of subjective well-being research. Many studies regarding subjective well-being in South Africa use ordered probit regression models. It is argued here that these models are based on false assumptions and that a MCA can be seen as a suitable alternative since it constitutes an assumption free model. Lastly, the insights gained from the exploratory analysis are discussed. The MCA seems to show that subjective well-being can be regarded as an outcome measure. Furthermore, it is argued that there are cultural differences (between the ethnic groups) regarding subjective well-being. It seems that the ethnic groups in South Africa have different conceptions of well-being and that different factors influence their subjective well-being assessments. This work is partly based on a Master thesis from 2004 at the Institute for Development Policy and Management at the University of Manchester. I am grateful for the intellectual guidance, the constant support and encouragement by Wendy Olsen and for the comments on earlier drafts from Peter Edward, David A. Clark and two anonymous reviewers.     

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.     

Family Structure and Children’s Economic Well-Being: Incorporating Same-Sex Cohabiting Mother Families

Research on family structure and child well-being rarely includes children in same-sex parent families, a notable omission since 28 % of female–female couple households contain children. Using the 2010–2013 pooled current population survey (CPS), we examined children’s economic well-being by family structure. These data were ideal for this study because they included a sizeable number of children in same-sex cohabiting mother families and the CPS measured both official and supplemental poverty, incorporating the cohabiting partner. Using the official poverty measure, children in same-sex cohabiting mother families were more likely to be poor than their counterparts in either different-sex cohabiting or married parent families. Using the supplemental poverty measure, children in same-sex mother families were no more likely to be poor than children in all other types of different-sex two-parent families.     

The Importance of Early Childhood Poverty

Most poor children achieve less, exhibit more problem behaviors and are less healthy than children reared in more affluent families. We look beyond correlations such as these to a recent set of studies that attempt to assess the causal impact of childhood poverty on adult well-being. We pay particular attention to the potentially harmful effects of poverty early in childhood on adult labor market success (as measured by earnings), but also show results for other outcomes, including out-of-wedlock childbearing, criminal arrests and health status. Evidence suggests that early poverty has substantial detrimental effects on adult earnings and work hours, but on neither general adult health nor such behavioral outcomes as out-of-wedlock childbearing and arrests. We discuss implications for indicators tracking child well-being as well as policies designed to promote the well-being of children.     

Determinants of Poverty and Their Variation Across the Poverty Spectrum: Evidence from Hong Kong,a High-Income Society with a High Poverty Level

This study aims to investigate into the determinants of poverty in Hong Kong. Previous research on poverty, which usually adopted a logistic regression model to examine individuals’ probabilities of being poor, could not adequately reveal the heterogeneity in experiences among people across the poverty spectrum, therefore has limited policy effort to address diverse needs of individuals struggling with poverty. In the present study, this concern is addressed by using a quantile regression model to examine the differential effects of the determinants of poverty across the poverty spectrum. Data were drawn from the Hong Kong Panel Survey for Poverty Alleviation (n?=?1668). Logistic regression indicated that being elderly, being female, not having a partner, from a single-parent household, not being employed, living in public rental housing, have lower educational attainment, and have poor self-rated health, increased the probability of being poor. Informational support was a protective factor of poverty, while several negative life events, such as having family member(s) with disabilities/chronic diseases and having financial burden, were risk factors of poverty. Quantile regression analysis was adopted to further examine the extent to which determinants of poverty unfold across poverty spectrum, which was captured by five groups of “extremely poor”, “deeply poor”, “at the poverty line”, “near poverty” and “marginally poor”. Quantile regression indicated that people living across the poverty spectrum were similarly affected by not having a partner, living in single-parent households and not working. However, extremely poor and deeply poor were more adversely affected by old age than those near poverty and marginally poor. It is also discovered that public rental housing buffered the poverty risks more in those who lived in deep poverty than those who were near poverty and marginally poor. University education protected the near poverty and marginally poor to a larger extent than those who were extremely poor and deeply poor. Information support also buffered the poverty risks, and people living across the poverty spectrum were equally benefited from it.

     

Subjective Poverty and Its Relation to Objective Poverty Concepts in Hungary

The paper analyzes subjective poverty in Hungary and compares it to the objective poverty concepts. Subjective poverty is defined by examining who people consider to be poor. Based on the Easterlin paradox, the initial hypothesis states that subjective and absolute poverty concepts are highly correlated. Taking into account that Hungary is a developed country, subjective well-being is supposed to be associated not only with absolute, but also with relative deprivation. The methods of systematic data collection are used to collect data about the belief of the population. The paper concludes that low income level, Roma descent, entitlement to social supports and unemployment are the items thought to be most related to poverty by the informants. It proves that subjective poverty is a multidimensional concept. It also concludes that absolute and relative poverty thresholds coincide with the subjective one. It implies that increasing the absolute income level of individuals may not be enough to improve their subjective wellbeing as they are also concerned with their relative income position.     

Multidimensional Poverty and Inequality: Insights from the Upper Blue Nile Basin,Ethiopia

As stated in the 2018 global Multidimensional Poverty Index (MPI) report, Ethiopia has the second largest multidimensionally poor population in Africa (after Nigeria). The global MPI was created to measure household’s multiple deprivations, but little systematic study has been carried out on the application of MPI measures on a smaller scale and vis-à-vis other measures of poverty. In addition, most of the few existing studies ignore any measure of inequality amongst the multidimensionally poor. This study explored multidimensional poverty in three different drought-prone agro-ecological settings of the Upper Blue Nile basin, Ethiopia. A preliminary participatory exercise was carried out at the study sites to select important indicators and then a structured survey was administered to 390 systematically and randomly selected households. The Alkire–Foster method was used to analyse multidimensional poverty and verified it with Correlation Sensitive Poverty Index (CSPI). Multidimensional poverty incidence, adjusted head count ratio and inequality were significantly different between study sites (p?<?0.001). Results indicated a high incidence (88%, 82% and 80%), intensity (52%, 55% and 56%), MPI (46%, 45% and 45%) and inequality (53%, 60% and 63%) of poverty in Aba Gerima, Guder and Dibatie study sites, respectively. A high level of divergence was revealed between the MPI and CSPI in terms of identifying the poor. The living standard and land and livestock ownership dimensions contributed the most to MPI. The case study signifies the importance of inclusion of land and livestock indicators for the national MPI. Besides, it implies that researchers and policymakers need to account for smaller scale contextualised indicators and location differences when studying and designing anti-poverty interventions.

     

Relationship Between Household Food Poverty and Vulnerability to Food Poverty: Evidence from Nigeria

Poverty and vulnerability to poverty are major challenges facing developing countries and have attracted the attention of development economists and policy analysts in recent years. This study examined the relationship between household food poverty and vulnerability to food poverty in Nigeria based on data from Nigeria Living Standard Survey (NLSS) (2004) obtained from the National Bureau of Statistics. A least-cost technique associated with the food-energy-intake approach was used to compute zone-specific food poverty lines based on the food baskets common to each geo-political zone; the Foster–Greer–Thorbecke (FGT) poverty index was used in computing food poverty incidence; the three-step feasible generalised least squares (3FGLS) procedure was used in estimating the magnitude of vulnerability to food poverty; cross tabulation and Pearson’s product moment correlation coefficient were utilised for the purpose of analysing the association between household food poverty and vulnerability to food poverty. The food poverty incidence was 50.23 % while the vulnerability to food poverty incidence was 61.68 % and the vulnerability to food poverty/food poverty ratio was 1.228. The food poor were more vulnerable to food poverty than the non food poor. There was significant positive correlation between food poverty incidence and vulnerability to food poverty incidence even though the correlation was not very strong. Thus, policies and programmes that will optimally reduce food poverty and vulnerability to food poverty should be adopted in Nigeria; these should be targeted more on the food poor. This is a major way to break the yoke of underdevelopment in Nigeria.     

Subjective Well-Being and Household Factors in South Africa

This paper uses a household surveyfrom South Africa to estimate a model ofsubjective well-being based upon poverty andhousehold characteristics including housing,sanitation, and transportation. Following Sen,we allow for factors in addition to income andwe begin to incorporate functionings andcapabilities as determinants of well-being. This study finds that important differencesexist among groups based upon their economicstatus. For the poorest quartilestransportation and housing play the mostimportant role in determining well-being, whilefor the richest quartiles, sanitation, water,energy, education and health are relativelymore important. These results have importantpublic policy implications because many of thefactors affecting well-being have large publicgood components. In addition, these resultscould be used to help governments focus aid inorder to improve well-being.     

Relative Economic Position and Subjective Well-Being in a Poor Society: Does Relative Position Indicator Matter?

Concern for relative income (or status in general) may have important implications for poverty and individual well-being. This paper examines the impact of relative economic position on individual’s level of well-being among poor communities in rural Ethiopia. The analysis uses a self-reported measure of overall life-evaluation as a measure of individual well-being. Despite the fact that well-being is multidimensional, the impact of non-money metric measures of relative economic position on individual well-being has not been given a lot of attention in the literature. In this study, relative economic position is measured using consumption data, asset index, and respondent’s own perception of relative wealth. The asset index captures the non-monetary dimensions of economic welfare, including education, physical assets, and social capital. We use data from the 2004 and 2009 waves of the Ethiopia Rural Household Survey and employ a multilevel modelling technique to account for individual and group level heterogeneity in our empirical analysis. We find no significant relationship between individual well-being and relative economic position measured with in consumption terms. In contrast, we do find a significant negative impact of relative position on individual well-being when we use asset indices and respondent’s own perception of relative wealth to measure relative economic position. Our findings suggest that when individuals compare themselves with others, they evaluate various aspects of their life, including their financial conditions, asset holdings, and social relations, which are hardly captured by consumption or income data in many poor countries.     

Time Poverty Thresholds and Rates for the US Population

Time constraints, like money constraints, affect Americans’ well-being. This paper defines what it means to be time poor based on the concepts of necessary and committed time and presents time poverty thresholds and rates for the US population and certain subgroups. Multivariate regression techniques are used to identify the key variables associated with discretionary time and time poverty. The data confirm the idea that individuals in households with children have less discretionary time and are thus more likely to be time poor than those in households without children. Controlling for other household characteristics, an additional child reduces a household adult’s daily discretionary time by 35 min. Surprisingly, while one might expect the necessary and committed activities required of an individual to be less in a two-adult household with children than in a one-adult household with children because child care can be shared, the data show that the presence of such a second adult only marginally reduces the necessary and committed time burden of an individual household member. Perhaps even more surprisingly, household income is not a statistically significant correlate of discretionary time or time poverty.     

Money Buys Financial Security and Psychological Need Satisfaction: Testing Need Theory in Affluence

The most prominent theory to explain the curvilinear relationship between income and subjective well-being (SWB) is need theory, which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases overall life satisfaction. Further, a path model tested the degree to which financial security and psychological need satisfaction mediated the path from economic standing to life satisfaction and demonstrated the complete mediation through higher-order needs—there was a 66% reduction in the direct link through financial security and a 34% reduction through psychological need satisfaction. Discussion focuses on how these mediation and path models extend need theory.     

A Sociodemographic Risk Index

In this paper, we conceptualize and develop an index of sociodemographic risk that we hypothesize will be an improvement over the standard poverty measure as a measure of risk for children’s development. The poverty line is widely used in government statistics and in research but is also widely acknowledged to have multiple shortcomings. Using recent data from the National Survey of America’s Families, we develop and examine a Sociodemographic Risk Index for two potential purposes: (a) to serve as a summary indicator of children’s environments that affect their well-being, and (b) to serve as a variable that can be used to identify at-risk subgroups of children whose well-being should be examined separately in indicator reports. Based on substantial research on children’s development, we chose five variables for the index: family income, family structure, parent education, family size, and home ownership. An additive sociodemographic risk index using these variables is strongly associated with multiple measures of child well-being in both bivariate and multivariate analyses. Hence, it serves as a good marker of risk for children and therefore as an indicator that could be monitored over time, across groups, and across places, as well as a variable that could be used to identify subgroups of at-risk children whose well-being should be monitored. However, analyses do not indicate that it performs better at identifying at-risk children than the current poverty measure. Therefore, we recommend the Sociodemographic Risk Index primarily as an additional summary indicator to be monitored, rather than as a replacement for the poverty measure.     

Tracking Poverty Reduction in Bhutan: Income Deprivation Alongside Deprivation in Other Sources of Happiness

This paper analyses poverty reduction in Bhutan between two points in time—2003 and 2007—from a multidimensional perspective. The measures estimated include consumption expenditure as well as other indicators which are directly (when possible) or indirectly associated to valuable functionings, namely, health, education, access to electricity, safe water, improved sanitation, enough room per person in dwelling, access to roads and land ownership. Interestingly, most of these indicators have been identified as sources of happiness in the 2007 Gross National Happiness Survey. Twelve different measures are estimated with a variety of values for the different parameters involved for robustness analysis. Also, estimates are bootstrapped creating 95 % confidence intervals. We find that over the study period there was an unambiguous reduction in multidimensional poverty regardless of the indicators’ weights, deprivation cutoffs and identification criterion of the poor. This reduction was mainly led by a reduction in the proportion of the poor which was accompanied by a reduction in the intensity of poverty among those who were less intensively poor, although not among those who were more intensively poor. Rather than accomplishing this poverty reduction by improving achievements in one or two indicators, there were significant reductions in several deprivations, especially in access to roads, electricity, water, sanitation, and education. We also find that when income alone is used to target the poor, inclusion errors are marginal but exclusion errors are sizeable. Despite Bhutan’s significant progress, challenges remain as poverty is still high in rural areas. A multidimensional measure in the lines proposed in this paper can prove useful for monitoring poverty reduction, prioritizing groups and evaluating upon investment.     

Left Out? Lesbian,Gay, and Bisexual Poverty in the U.S.

This paper analyzes the risk of poverty for self-identified lesbian, gay, and bisexual (LGB) people from mid-2013 through 2016 in the National Health Interview Survey, a nationally representative survey of households that includes a sexual orientation question based on identity (n = 112,143). The study tests the role of family structure—living with a spouse or partner and having children—on the risk of poverty for LGB and heterosexual respondents. After controlling for education, demographic, and health measures in a probit model, lesbians and gay men are as likely to be poor as similar heterosexuals, but bisexual women and men are significantly more likely to be poor, regardless of relationship status. Single and childless gay men are also more likely to be poor than single heterosexual men. Being in a relationship reduces the likelihood of poverty for people of all sexual orientations, but the data show evidence of a gender composition effect: married male same-sex couples are less likely and unmarried female same-sex couples more likely to be poor than their married counterparts. Marriage reduces gay men’s poverty risk more and children increase their poverty risk less than for heterosexual men.     

The dynamics of child poverty in Sweden

This paper studies the dynamics of child poverty in Sweden. We find that one out of every five children is disposable income poor at least once during childhood, while only 2% are chronically poor. Children in Sweden are protected economically from many serious events such as parental sickness and death. Family dissolution and parental unemployment do push some children into poverty. However, these poverty spells are mostly temporary. Single mothers, for example, are overrepresented among the poor but not among the chronically poor. Children with immigrant parents are strongly overrepresented among the chronically poor.     

Integrating BP and MGWR-SL Model to Estimate Village-Level Poor Population: An Experimental Study from Qianjiang,China

Spatially-explicit, fine-scale mapping of poor population distribution at a village level is a necessary prerequisite for developing precise anti-poverty strategies in rural China. To address the data missing of poor population at a village scale, we proposed a modeling methodology from the perspective of spatial poverty, integrating BP and MGWR-SL (Mixed Geographically Weighted Regression model with Spatially Lagged dependent variable) that correspond to population estimation and poverty incidence estimation, respectively, to explore a more accurate and detailed village-level poor population distribution. Furthermore, we justified the accuracy, reliability, and scale effects of the model by using GIS spatial analysis and cross-validation. From the case test, we found that, the proposed model could characterize poor population distribution more accurately than other existing methods, resulting in that the errors of both population spatialization and poverty incidence for each village are less than 5% at a 500 * 500 m grid scale. It can also be inferred that the spatialization of socioeconomic data at a fine scale should take into full account of spatial heterogeneity and spatial autocorrelation for both dependent and independent variables, so as to improve the modeling accuracy. This study may provide a perspective for better understanding the detailed and accurate poverty status of data–scarce village in poverty-stricken rural areas, and serves as a scientific reference regarding decision-making in both promoting “entire-village advancement” anti-poverty harmonious development and constructing the new countryside of China.     

Development of Indicators for Family Well-Being in Malaysia

This study was carried out to develop a set of indicators for measuring and reporting the state of family well-being in Malaysia, and subsequently, to produce an Index of Family Well-Being. To build the set of indicators, domains of family well-being and relevant indicators were identified from past studies. Focus group discussions with families, professional groups and NGOs helped to refine the indicators prior to the main study. Using a stratified random sampling design, 2,808 households were identified (a parent and a child aged at least 13 years), making a total sample of 5,616 respondents. Results indicated ten key indicators that can predict family well-being—resiliency, safety, savings, healthy lifestyle, time with family, work-family balance, importance of religion, number of bedrooms at home, debt and child care—supporting the notion of family well-being being multi-dimensional and interconnected. On the basis of the results, a model of family well-being was hypothesized. This model was used to guide the development of the Index of Family Well-being. Confirmatory factor analysis (CFA) was carried out to determine the fit of the model to data. Five domains of family well-being were identified—family relationships, economic situation, health and safety, community relationship and religion/spirituality. The Index of Family Well-Being was calculated using the equal weighting strategy to each of these five domains. This index showed that the current family well-being of Malaysians is relatively high at 7.95 (SD = 1.38) on a 0–10 Likert response format. The findings suggest that family well-being is multifaceted, made up not only of the immediate family relationships and health and safety of its members, but include having adequate income to meet the demands of a minimum standard of living. Currently, the Index that is developed is only in the form of a numerical value reflecting the state of family well-being, but in future, it can be used to track changes in the family from time to time.     

Constructing Well-Being and Poverty Dimensions on Political Grounds

The paper addresses the problem of justifying ethically sound dimensions of poverty or well-being for use in a multidimensional framework. We combine Sen’s capability approach and Rawls’ method of political constructivism and argue that the constitution and its interpretative practice can serve as an ethically suitable informational basis for selecting dimensions, under certain conditions. We illustrate our Constitutional Approach by deriving a set of well-being dimensions from an analysis of the Italian Constitution. We argue that this method is both an improvement on those used in the existing literature from the ethical point of view, and has a strong potential for providing the ethical basis of a conception of well-being for the public affairs of a pluralist society. In the final part, we elaborate on the implications for measuring well-being based on data, by ranking Italian regions in terms of well-being, and pointing out the differences in results produced by different methods.