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Subjective Wellbeing and Institutions: The Case of Rural Ethiopia

Tsegay Tekleselassie

No 16, Working Papers from Policy Studies Institute

Abstract: This study focuses on the role of religiosity, general and political trust, local participation, and welfare metrics on wellbeing in rural areas using the Ethiopian Rural Household Survey. Ordered probit methods that account for Heteroscedasticity reveal distinctive correlates of overall life satisfaction and momentary happiness. Broader socio-economic factors such as religiosity and political governance strongly predict life satisfaction, while largely welfare metrics drive momentary happiness. The differential role of institutions on life satisfaction and momentary happiness is in comport with Deaton’s (2008) and Stevenson and Wolfers’s (2008) proposition that life satisfaction and happiness are not synonymous.

Keywords: Institutions; Subjective Wellbeing; Ordered Probit; Developing Countries (search for similar items in EconPapers)
JEL-codes: C25 D60 I31 Z12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2017-02
New Economics Papers: this item is included in nep-hap and nep-hpe
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