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Objective and Subjective Indicators of Life Satisfaction in Australia: How Well Do People Perceive What Supports a Good Life?

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  • Kubiszewski, Ida
  • Zakariyya, Nabeeh
  • Costanza, Robert

Abstract

Wellbeing is the product of a complex set of factors, some of which are well perceived by individuals while others are not. Surveys based on answers to the question: ‘how satisfied are you with your life?’ have allowed increased understanding of the factors affecting perceived life satisfaction. We use the Household, Income and Labour Dynamics in Australia (HILDA) survey to analyse the relationship between self-reported ‘subjective’ explanatory variables and ‘objective’ variables that measure similar domains in explaining overall life satisfaction. We explain about 49% of the variation in individual overall life satisfaction when using 8 of the subjective satisfaction variables included in HILDA, but only about 12% when using 19 of the objective variables covering similar domains. This is partly due to the differences between objective life situations and individual's perceptions of them. Understanding the relationships between objective and subjective variables is imperative for better policy. We find that individual's perceptions of the full range of objective conditions that support their wellbeing is quite limited. An integrated understanding of wellbeing is needed that can incorporate both what individuals do perceive and value and the factors that they do not perceive well but that are nonetheless valuable in supporting their wellbeing.

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  • Kubiszewski, Ida & Zakariyya, Nabeeh & Costanza, Robert, 2018. "Objective and Subjective Indicators of Life Satisfaction in Australia: How Well Do People Perceive What Supports a Good Life?," Ecological Economics, Elsevier, vol. 154(C), pages 361-372.
    • Handle: RePEc:eee:ecolec:v:154:y:2018:i:c:p:361-372
    DOI: 10.1016/j.ecolecon.2018.08.017
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    2. Austin Chia & Margaret L. Kern, 2021. "Subjective Wellbeing and the Social Responsibilities of Business: an Exploratory Investigation of Australian Perspectives," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(5), pages 1881-1908, October.
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    4. Rasheed, A. Rifaee, 2020. "Marine protected areas and human well-being – A systematic review and recommendations," Ecosystem Services, Elsevier, vol. 41(C).
    5. Yu-Chuan Chen & Yung-Ho Chiu & Tzu-Han Chang & Tai-Yu Lin, 2023. "Sustainable Development, Government Efficiency, and People’s Happiness," Journal of Happiness Studies, Springer, vol. 24(4), pages 1549-1578, April.
    6. Irene Daskalopoulou & Athanasia Karakitsiou & Christina Malliou, 2022. "A Multicriteria Analysis of Life Satisfaction: Assessing Trust and Distance Effects," SN Operations Research Forum, Springer, vol. 3(4), pages 1-20, December.
    7. Purvis, Ben & Genovese, Andrea, 2023. "Better or different? A reflection on the suitability of indicator methods for a just transition to a circular economy," Ecological Economics, Elsevier, vol. 212(C).
    8. Luhua Wu & Shijie Wang & Xiaoyong Bai & Guangjie Luo & Jinfeng Wang & Fei Chen & Chaojun Li & Chen Ran & Sirui Zhang, 2022. "Accelerating the Improvement of Human Well-Being in China through Economic Growth and Policy Adjustment," IJERPH, MDPI, vol. 19(19), pages 1-20, October.
    9. Ida Kubiszewski & Kenneth Mulder & Diane Jarvis & Robert Costanza, 2022. "Toward better measurement of sustainable development and wellbeing: A small number of SDG indicators reliably predict life satisfaction," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 139-148, February.
    10. Ayhan Gormus & Simla Güzel, 2021. "Life Satisfaction and Job Quality Relationship: Findings from the OECD Countries for Linear Regression Models," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(81), pages 1-33, December.
    11. Phil Lignier & Diane Jarvis & Daniel Grainger & Taha Chaiechi, 2024. "Spatial Heterogeneity and Subjective Wellbeing: Exploring the Role of Social Capital in Metropolitan Areas Using Multilevel Modelling," Journal of Happiness Studies, Springer, vol. 25(5), pages 1-23, June.
    12. Tianrong Xu & Nikmatul Adha Nordin & Ainoriza Mohd Aini, 2022. "Urban Green Space and Subjective Well-Being of Older People: A Systematic Literature Review," IJERPH, MDPI, vol. 19(21), pages 1-29, October.
    13. Chen, Jing & Zhai, Shiyan & Song, Genxin & Huang, Shaopu & Liu, Huan & Jiang, Xintong & Luo, Jingjing & Wu, Wei, 2023. "Evaluation and determinants of satisfaction with the urban-rural interface area liveability toward “15-min city”: A case study in Henan Province, China," Ecological Economics, Elsevier, vol. 214(C).
    14. Prakash, Kushneel & Awaworyi Churchill, Sefa & Smyth, Russell, 2020. "Petrol prices and subjective wellbeing," Energy Economics, Elsevier, vol. 90(C).
    15. Methorst, Joel & Rehdanz, Katrin & Mueller, Thomas & Hansjürgens, Bernd & Bonn, Aletta & Böhning-Gaese, Katrin, 2021. "The importance of species diversity for human well-being in Europe," Ecological Economics, Elsevier, vol. 181(C).
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    17. Sneha Roychowdhury & Suvodeep Mazumdar & Dhavalkumar Thakker & Alessandro Checco & Vitaveska Lanfranchi & Barry Goodchild, 2024. "Integrating Virtual Walkthroughs for Subjective Urban Evaluations: A Case Study of Neighbourhoods in Sheffield, England," Land, MDPI, vol. 13(6), pages 1-32, June.

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