Life Satisfaction Among Turkish and Moroccan Immigrants in the Netherlands: The Role of Absolute and Relative Income

In this paper we investigate the role of several socio-economic and non-economic factors such as absolute and relative income, education and religion to explain the differences of happiness levels of Turkish and Moroccan Immigrants in the Netherlands by using ordered logit model. We focus on members of the Moroccan and Turkish communities, as these are the two largest non-EU immigrant communities in the Netherlands. Our findings reveal that Moroccans, although they have lower income levels and higher unemployment rates than Turkish immigrants, their happiness level is higher than the Turkish immigrants. In order to understand this dilemma a questionnaire survey was performed to 111 Turkish and 96 Moroccan immigrants in Rotterdam, Amsterdam, Den Haag, Utrecht and Arnhem in 2010. The main purpose is to investigate how reference group’s self-reported life satisfaction is related to the level of absolute income; the level of relative income and other socio-economic factors. The main findings are that for Turkish sample relative income is significantly and negatively correlated with life satisfaction whereas, both absolute income (positively) and relative income (negatively) are significantly correlated with life satisfaction for Moroccan case.     

Life Satisfaction and Income Comparison Effects in Turkey

This paper evaluates the relative impact of different types of benchmarks such as internal and external comparisons on subjective well-being in Turkey. There are few studies on life satisfaction for Turkey and they mostly focus on the impact of socio-demographic effects on subjective well-being. The main purpose of this paper is to investigate how reference group’s self-reported life satisfaction is related to the level of consumption; as well as the level of internal and external comparisons and other socio-economic factors. The paper relies on the Life in Transition Survey (EBRD 2011), a survey conducted in late 2010 jointly by the European Bank for Reconstruction and Development and the World Bank. The survey includes 1,003 observations for Turkey. The emphasis of the paper is based on the concept of income comparisons—both to others in the relevant reference group and to oneself in the past (evaluation) and future (expectation). The main findings are; in addition to household consumption, internal and external comparisons have significant impact on life satisfaction. The impact of comparisons is asymmetric: in most cases under-performing one’s benchmark has a greater effect than out-performing it.