Mediating role of financial satisfaction between income and subjective wellbeing: an evidence from Pakistan

Muhammad Hassan Danish and Hafeez Rehman

International Journal of Happiness and Development, 2021, vol. 6, issue 3, 220-236

Abstract: The present study aims at analysing the role of income on subjective well-being (SWB) through the mediation channel of financial satisfaction (FS) by deploying the generalised structural equation model (GSEM) with order logit after collecting the data from 1566 households in rural and urban Punjab, Pakistan. Results of this study illustrate that education, income and household assets related to FS are significantly positive, while these variables had no significant relationship with SWB. Moreover, findings of the study showed that income does not affect SWB of people unless they are financially satisfied with the overall position of their household. Health, social capital and freedom of choice are also significant predictors of SWB. The present study suggests the policy makers to lower the interest rate to encourage investment among lower- or middle-income group, which may lead to an increase in their assets and consequently, an increase in financial and subjective wellbeing.

Keywords: income; financial satisfaction; happiness; life satisfaction; life worthwhile; social capital; order logit; GSEM; generalised structural equation model; Punjab; Pakistan. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=117097 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijhdev:v:6:y:2021:i:3:p:220-236

Access Statistics for this article

More articles in International Journal of Happiness and Development from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().