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Influence of Freedom of Choice on Happiness

Author

Listed:
  • Koohborfardhaghighi, Somayeh

    (Deloitte FAS LLP)

  • Summers, Christopher R.

    (University of Missouri-St. Louis)

  • Heshmati, Almas

    (Jönköping University)

  • Altmann, Jörn

    (Seoul National University)

Abstract

The literature on happiness shows that there are many factors that influence a person’s happiness. Extending previous studies, we investigate the role of the freedom of choice as a key contributing construct in influencing a person’s happiness. We define two hypothetical sub-constructs for the freedom of choice to fully develop a model of happiness. We name those hypothetical sub-constructs (latent variables) as volitional and non-volitional choices, each of which is measured by a variety of indicators (observed variables). The selected indicators are mainly from the social dimensions of happiness within working and living environments, which affect the quality-of-life people enjoy. We use the structural equation modeling approach to test our model. We restrict our empirical studies to four East Asian countries, which are South Korea, Japan, Taiwan, and China. The obtained results of this study, confirm that happiness tends to be closely related to interpersonal connectedness and individuals’ experiences within shared relationships in certain countries. Our findings open new insights on how happiness can be considered as an emerging outcome of the interplay between personal characteristics and societal interactions. Findings of this study can be applied in empowering the cognitive dimension of social capital within an organization.

Suggested Citation

  • Koohborfardhaghighi, Somayeh & Summers, Christopher R. & Heshmati, Almas & Altmann, Jörn, 2022. "Influence of Freedom of Choice on Happiness," IZA Discussion Papers 15315, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15315
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    Cited by:

    1. Behera, Deepak Kumar & Rahut, Dil B & Padmaja, M & Dash, Ajit Kumar, 2024. "Socioeconomic determinants of happiness: Empirical evidence from developed and developing countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).

    More about this item

    Keywords

    hedonic and eudemonic approaches; freedom of choice; happiness; structural equation modelling; East Asia region; cognitive social capital;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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