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Cross‐country determinants of satisfaction with life

Author

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  • Elia Kacapyr

Abstract

Purpose - This paper aims to investigate the social, economic, and cultural factors that impact satisfaction with life (SWL) in 63 countries. The intent is to determine empirically the extent to which self‐reported SWL truly reflects well‐being. Design/methodology/approach - A cross‐sectional data set of 63 countries in the 1990s is used to develop a model that explains SWL using social, economic, and cultural variables. The regression errors indicate that some countries are inexplicably happy or unhappy. If behavioral variables in these countries, such as suicide and fertility rates, are better explained by the model's fitted values than actual SWL, then cross country comparisons of subjective SWL surveys are invalid. Findings - Social and economic factors explain about 66 percent of the variation in self‐reported happiness across countries. Respondents in former socialist‐bloc countries report surprisingly low levels of SWL given their circumstances while Latin Americans report higher‐than‐expected levels of happiness. These two geographic anomalies are attributed to cultural factors and dummy variables for each region are highly significant. People living in these two geographic regions are shown to behave in accordance with their reported levels of happiness, more so than their predicted levels, with regard to suicide and fertility rates. Even mean blood pressure in these countries is better predicted with reported levels of satisfaction than predicted levels. All this supports the notion that surveys of SWL are good measures of well‐being. Research limitations/implications - The results are obtained using cross‐country macro‐level data. The degree of aggregation, sample size, and presence of multicollinearity may hinder the identification of appropriate predictors of well‐being. On the other hand, these results corroborate those from larger, pooled, and individual‐level data sets. Originality/value - The findings support the view that aggregated surveys of life satisfaction contain important information concerning the well‐being of citizens in a given country. Survey data can compete with other macroeconomic and sociological data to monitor progress and explain behavior at the national level.

Suggested Citation

  • Elia Kacapyr, 2008. "Cross‐country determinants of satisfaction with life," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(6), pages 400-416, May.
  • Handle: RePEc:eme:ijsepp:v:35:y:2008:i:6:p:400-416
    DOI: 10.1108/03068290810873384
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    Citations

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    Cited by:

    1. Hannah C. Silver & Steven B. Caudill & Franklin G. Mixon Jr., 2017. "Human capital and life satisfaction in economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(2), pages 165-184, April.
    2. Chang Beum Kwon, 2022. "The Effect of Defense Spending on Subjective Well-Being: Cross-Country Evidence," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 1961-1989, August.
    3. Salahodjaev, Raufhon, 2017. "Government size, intelligence and life satisfaction," MPRA Paper 76902, University Library of Munich, Germany.
    4. Kundu, Srikanta & Kundu, Ruma & Chettri, Kul Bahadur, 2024. "Asymmetric effects of democracy and macroeconomic factors on happiness under high and low per capita incomes: A threshold panel analysis," Ecological Economics, Elsevier, vol. 216(C).
    5. Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.
    6. Tavares, Aida Isabel, 2015. "Revisiting the inactivity - (un) happiness relationship, a cross-country exploratory analysis," MPRA Paper 67371, University Library of Munich, Germany.
    7. Sofie Amalie Damkier & Simon Ozer, 2022. "Social Identity and Well-being: A Cross-Cultural Examination of Social Identity and Well-being in Light of the Accelerating Cultural Globalisation," Psychology and Developing Societies, , vol. 34(1), pages 125-145, March.
    8. Iban Ortuzar & Gemma Renart & Angels Xabadia, 2021. "Effects of Public Healthcare Budget Cuts on Life Satisfaction in Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 311-337, July.
    9. Alexandra Nonnenmacher & Jürgen Friedrichs, 2013. "The Missing Link: Deficits of Country-Level Studies. A Review of 22 Articles Explaining Life Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 1221-1244, February.
    10. Sibylle Puntscher & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "The Impact of Social Capital on Subjective Well-Being: A Regional Perspective," Journal of Happiness Studies, Springer, vol. 16(5), pages 1231-1246, October.
    11. Roma Debnath & Ravi Shankar, 2014. "Does Good Governance Enhance Happiness: A Cross Nation Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(1), pages 235-253, March.

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