exploring the determinants of happiness: evidence from rural thailand and rural ethiopia monica...
TRANSCRIPT
Exploring the determinants of happiness: Evidence from rural Thailand
and rural Ethiopia Monica Guillen Royo and Jackeline Velazco
Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia
OVERVIEW
• Introduction• Determinants of happiness• Basic needs in rural Thailand and Ethiopia• The empirical model• Results • Concluding remarks
INTRODUCTION
• Paper objective: Explore role played by basic needs, demographic and social factors in explaining happiness in rural Thailand and Ethiopia.
• Theoretical framework: Theory of human needs developed by Doyal and Gough (1991)
• Primary Sources: Household data collected as part of Wed Research Group, Bath University– 924 rural households in Ethiopia– 922 rural households in Thailand
Determinants of Happiness in Developing Countries
Latin American Graham (2005)
Russia Graham (2000)
South Africa Kingdon et al. (2003)
Rural China Knight et al.
(2004)
Mexico Rojas (2004)
Variables
Relationship Relationship Relationship Relationship Relationship Household Head Characteristics
Age Education Male Married Employment status (self-employed) Minority Income Unemployed African/colored/indian
(-)
(-)* (-)* (+)*
(-) (-)
(-)
(-)
(+)* (+)
(+)* (+)
(+) (-)
(+) (+)
(+) (-) (-)
(-) (+) (-) (+)
(+)
(-)
(+)*
(+)
(+)
Household Characteristics Number of children < 16 Urban household
(+) (-)
Basic Needs/Assets Health index Wealth index Asset value
(+) (+)
(+)
(+)
(+)
(+)
(+) Perception Variables
Household’s wealth in village (rich) Household’s wealth in village (above average)
(+) (+)
Number of observations Pseudo R square
15,209 0.062
5,134 0.033
8,279 0.09
9,112 0.18
1,540 0.085
Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia
ETHIOPIA AND THAILAND AT A GLANCE
Indicators Ethiopia (2003) Thailand (2004) Population (millions) 68.6 62.4 GNI per capita (US$) 90 2,440 Poverty (% of population) 44 13.1 Rural population (% total population) 84 68 Life expectancy at birth (years) 42 69
Basic needs satisfactionTotal rural
Ethiopia
Total rural
ThailandHealthChronic illness 31.0% 16.0%(% of households affected)Major disability 31.0% 8.0%(% households affected)
EducationIlliteracy 56.5% 8.0%Non forma1 2.8% 2.0%Primary 11.6% 55.0%secondary 1.5% 24.0%Higher education 5.8% 6.0%
HousingElectricity 14.0% 98.0%Clean water 53.2% 89.0%Sanitation 12.7% 92.0%Piped water 0.4% 61.0%
FoodFood shortages 86.6% 29.0%
ConnectionsKin and fictive kin 80.7% 97.0%Local community 55.3% 59.0%Wider world 78.0% 57.0%
WealthAsset index (average score) 1.7% 2.8%
Long term shocksDrought/floods 50.4% 29.7%Serious illness of family members
28.8% 9.3%
Death of family member 26.6% 7.6%Total households 924 922Source: RANQ-Ehiopia(2004),
Basic Needs Satisfaction in rural Ethiopia and Thailand
Total rural
Ethiopia
Total rural
Thailand
Very happy 9.4% 5.0%Fairly happy 61.3% 76.0%Not too happy 29.3% 19.0%
Total (number) 923 918
Self-reported Happiness (%)
Source: RANQ-Thailand(2004), WeD Research Group, University of Bath, UK
Total rural housholds
Ethiopia
Total rural housholds Thailand
Family size (average) 5.12 4.68
Head of household
Gender (in %)Male 77.1% 76.7%Female 22.9% 23.3%Total (number) 923 921
Age groups (in %)
a) 20-39 42.0% 26.1%b) 40-59 35.3% 46.3%c)Above 60 22.7% 27.6%Total (number) 916 920
Religion (in %)Christian 47.4% -Islam 52.6% 32.1%Buddhist - 67.6%Total (number) 857 901
Main ecnomic activity (in %)
Farmer 77.1% 60.0%
Household worker 15.0%
Trader 4.3% 5.3%
Total (number) 760 922
Socio-demographic characteristics, 2004
Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia
THE EMPIRICAL MODEL
• Modelling individual perceptions
• Probit model: Choice between two discrete alternatives. Happy/unhappy.
THE EMPIRICAL MODEL
What are the Determinants of
Happinessin rural Thailand
and Ethiopia?
Household headCharacteristics
AgeSex
Marital statusReligion
EducationEmployment status
HouseholdCharacteristics
Family sizeNumber of children
Basic Needs/assetsAccess to housing
facilitiesAccess to education
facilitiesAccess to health care
facilitiesWealth (asset index)
Food shortageshocks
Perception VariablesHousehold wealth
compared withvillage: poor, average
and rich
Household income fiveyears ago: better, same
and worse
Social ResourcesHouseholds take part
in organisations
Household membersmade visits outside
The community
Household uses massmedia to be informed
RESULTS: DETERMINATS OF GLOBAL HAPPINESS IN RURAL THAILAND AND ETHIOPIA
Thailand Ethiopia Variables Relationship Marginal
Effect Relationship Marginal
effect Household Head Characteristics
Age Education Employment status (self-employed) Married
(-) (+) (-)
-8% 1% -4%
(-) (-) (+) (+)
-1% -10% 12% 9%
Basic Needs Food shortage in the last 12 months Asset index Household faced a shock last 5 years Land size (has.) Access to stock cattle
(-) (+) (-)
-5% 4% -4%
(-)* (+)
(-)* (-) (+)
4%
-7% 8%
Perception Variables Household’s wealth in village (rich) Household’s wealth in village (above average) Household income is worse than 5 years ago
(+) (+) (-)
14% 11% -6%
(+) (+)
26% 27%
Number of observations Pseudo R square
908 0.199
921 0.194
*Variable not significant
Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia
CONCLUDING REMARKS
• When basic needs are not met happiness is generally reduced.
• Material wealth/resources positive impact on happiness
• Perception variables important determining factor
• There was significant variation across country on the role of education
• Need for further work exploring the meaning of the causal relationships