The Pursuit of Happiness

and a Better Future: An

Analysis of Subjective

Well-Being in Latin

American Migrants MASTER THESIS EXPOSÉ

Rodrigo Rondón Quevedo

European Master in Business Studies

Supervisor: Prof. Ralf Wagner

Table of Contents

Abstract ..................................................................................................................................... 1

Introduction .............................................................................................................................. 2

Concept and Measurement of Happiness .............................................................................. 5

Problem Statement................................................................................................................... 6

Purpose and Rationale of the Research ................................................................................. 7

Aim and Research Questions .................................................................................................. 9

Hypothesis ............................................................................................................................... 10

Methodology ........................................................................................................................... 11

Literature Review .................................................................................................................. 12

Overview of Chapters ............................................................................................................ 14

Plan of Work .......................................................................................................................... 15

References ............................................................................................................................... 16

1

Abstract

The main objective of this research is to analyze the subjective well-being of individuals from

developing countries in a context of migration. Considering that the most frequent destinations

of migration are developed countries, this study finds an opportunity to analyze the

implications around immigration to developing countries in order to evaluate if the social,

political and economic factors of the country can enhance different patterns of subjective well-

being. The study also intends to give focus to the variable of income in subjective well-being

as it is a recurrent to relate both terms in the study field of happiness. In the last 3 years, a

migration crisis has taken place in South America as more than 3 million Venezuelans have

fled from their nation; escaping from a continuous degradation of life quality provoked by the

political and economic situation of the country. The research takes this case as a mean to

explore its inquiries and to provide a new perspective around this problem. Thus, in order to

achieve the purpose of the study, a survey will take part in Peru, where many Venezuelans have

been emigrating since 2015. Results will intend to measure and explain the different happiness

factors around the Venezuelan immigrants to then give ground for comparisons between

immigrants of developed and developing countries and between immigrants and natives.

2

Introduction

It is commonly addressed that the ultimate objective of life is to attain happiness, but different

outlooks or interpretations of this well-being state make it somewhat complicated to define and

study the term. Identifying the main factors that stimulate or discourage the state of happiness

and even more to determine appropriate techniques and tools for measurement are a common

challenge for researchers (Wilson, 1967; Costa & McCrae, 1980; Diener, 1984;

Veenhoven,1990; McGregor & Little, 1998; Easterlin, 2001). However, happiness research has

gained significant interest in the last decades as several governments in different countries have

applied its findings to deliver better political measures to its citizens. Countries like Bhutan,

The United Arab Emirates and Venezuela have shown their compromise to this approach by

being the first countries that include a Ministry of Happiness among their existing

governmental departments (Peru21, 2017). Alongside this new commissions, new ways to

measure happiness such as the “Gross National Happiness” (GNH), introduced by the

government of Bhutan (The Centre for Bhutan Studies, 2004), have become useful to frame

and analyze the subjective well-being of people according to a country's political and economic

background.

One of the most discussed topics among this field is the effect of the individual’s income and

consumption as an important variable for happiness. Some researchers (Easterlin, 1973;

Diener, 1984; Hagerty & Veenhoven, 2003) agree that there is a significant correlation between

income and subjective well-being; where an individual who increases its wealth will experience

a positive change in its happiness in a determined period of time. Nevertheless, income cannot

be taken as the unique source of happiness as there are many secondary variables that can act

as a significant producer of wellness, even if they can be enhanced by a higher income (Diener,

1984). Health, work, freedom, socialization, family, civic participation, and others show a big

correlation as well and could sometimes be the prime drivers of subjective well-being (Wilson,

1967; Costa et al., 1980; Alarcon, 2002; Binder & Coad, 2011) To this debate, it commonly

comes into question if people who are part of the lowest socio-economic group are able to

attain and preserve happiness regardless of their reduced income level. A particular study

conducted by Jorge Yamamoto (Trejo et Ruvalcaba, 2016) in diverse Latin American

3

communities indicates that for these societies happiness seems to be directed by variables that

are not strongly correlated to income. He implies that the presence of survival challenges that

are dealt in a collectivistic manner; optimistic behaviors that influence minimalistic conducts

and adaptability to unfeasible situations are strongly contributing to Latin American subjective

well-being. However, Yamamoto also argues that the more urbanistic the community is,

subjective well-being patterns modify and more individualistic features appear (Trejo et al.,

2016).

This study will test and analyze the development of subjective well-being in Latin American

individuals who encounter monetary poorness and subsequently face new environments and

settings by migrating to a foreign country. According to the World Happiness Report of 2018

income is the main factor that leads to migration among Latin America, meaning that migrants

usually have to forgo their social life and family to look for better chances abroad (World

Happiness Report, 2018). It also mentions that potential migrants usually show a higher degree

of dissatisfaction compared to the people who decide to stay home and that migrants are likely

to have modest improvement in their happiness. However, economic migration research in

Latin America has mainly evaluated SWB of migrants who decide for developed countries as

their destination. This is due to the fact that the most desired destinations are principally

developed nations (Navarro, Ayvar & Zamora, 2016) and the amount of data collection in this

field is supportive to this end. Consequently, the main interest of this study is to assess the

migrant’s new well-being condition in a developing country. A contribution in the field of

subjective well-being of migrants can be withdrawn from the analysis of their experience in a

developing country where the conditions are fairly different. Thus, the main emphasis of this

study will be aligned on the specific case of Venezuelan citizens migrating to Peru.

Until August 2018, approximately 3 million Venezuelan citizens have fled from the political

and economic crisis that their country encounters and migrated mainly to American countries,

being Peru the second most popular destination by receiving around 410,000 Venezuelan

refugees (Infobae, 2018). According to the actual president of Venezuela, Nicolás Maduro, the

migration crisis is nonexistent and Venezuelans who have fled are eager to return as they

encounter discrimination and bad working conditions in their receiving countries (El Comercio,

2018). Maduro alleges that there is an ongoing psychological war caused by the international

media, making the world believe that more than 2 million Venezuelans have migrated.

Nonetheless, the United Nations estimates that more than a 7% of Venezuela’s population are

4

part of the exodus since 2014, which accounts for approximately 2.3 million people (OHCHR,

2018). The OHCHR, the leading entity for human rights of the United Nations (2018), also

claims that the main reasons for leaving Venezuela are the fear of political persecution, threats

from armed groups; high crime rates and lack of access to health care (OHCHR, 2018). The

actual circumstance is beneficial to the aim of the study as it can be inferred that the majority

of migrants encounter wellness dissatisfaction and that they are expecting to embrace new

opportunities to attain a higher quality of life for themselves and their relatives.

5

Concept and Measurement of Happiness

In this research, the term happiness is also mentioned as subjective well-being and wellness.

The field of happiness research in social sciences has almost seven decades of work and many

contributions have helped to frame the term. Ed Diener (1984) explains that subjective well-

being has three main characteristics. The first contemplates the subjectivity of the term as the

definition will regularly depend on the individual’s background and understanding. Adding to

this first feature, Rut Veenhoven (1993) defines happiness as the degree to which an individual

judges the overall quality of his own life. The second aspect implies that subjective well-being

includes positive measures as it is not only explained by the absence of negative factors. The

third and final characteristic makes clear that subjective well-being is a global evaluation of all

aspects of the individual's life (Diener, 1984). Some scholars claim that there are recurrent

objective well-being factors that will build and define the subjective well-being of an

individual. For instance, family adjustment and self-ideal (Wilson, 1967), income,

unemployment, health and social factors (Binder & Coad, 2011) will directly influence

subjective well-being. Objective and subjective well-being factors could also be

interchangeably influential, as happiness can also regulate the work performance, health and

social interaction (Diener, 1984; Binder et al., 2011).

One concern is clear; the subjectivity of happiness can bring obstacles to the measurements for

the experiment. The reliability of the answer used for measurement might be compromised as

the respondent is free to use his own interpretations of happiness to do a self-subjective well-

being evaluation. Nonetheless, such freedom will support answers that contain valuable self-

judgements, where relevant feelings that relate to well-being can be appreciated while also

showing a valid variance (Diener, 1984). Thus, accounting the first characteristic exposed by

Diener (1984), this study considers that the concept of happiness should not be disrupted in the

examined individual by presenting a set definition of the term and stimulating possible biases.

Therefore, the research will apply a survey that will be based on the Cantril Self-Anchoring

Scale (Cantril, 1965) in which the first inquiry will be: “Considering all aspects of your life,

how happy would you say you are”. Then, the answers would be posed in a scale where the

ranges will go from 0 to 10; being 0 extremely unhappy and 5 extremely happy. This method

is also known as Cantril life ladder and has been used as a good reference by several social

researchers (Veenhoven, 1993; Easterlin, 2001; Costa et al, 1980; Diener, Emmons, Larsen &

6

Griffin, 1985) and organizations that publish studies of well-being (World Happiness Report,

2018; Gallup, 2010). For reliability and comparison purposes, the methodology of this research

will be based on the Cantril method (Cantril, 1965), specifically aligned to the measures used

by the World Happiness Report (2018). It is important to note that the World Happiness Report

2018 was made by using data collected by the Gallup World Poll from 2005 to 2017 and works

on national averages of life evaluations.

Problem Statement

There are several researches contemplating the field of subjective well-being in Latin America

and it has established a great base of knowledge for happiness research (Graham & Pettinato,

2001; Trejo et al., 2016). It is intriguing how factors that drive happiness in Latin America have

a clear differential when compared to other regions, especially to first world countries. The

findings of Yamamoto show that income and social indicators are not the most consistent

determinants of happiness in the region (Trejo et al., 2016).

However, it is important to mention that migration is a common tendency for many Latin

Americans who are not content with their current life state. By migrating, other variables are

taken in consideration in order to assess the subjective well-being of the individuals as the

alteration of their social environment may or may not grant the desired happiness. To this

situation, other researchers (World Happiness Report, 2018; Polgreen & Simpson, 2010) have

aimed to contemplate these new factors and contribute more to the study field. Yet many

investigations, when studying migration, focus on national migration or international migration

where a developed country is the final destination.

Accordingly, this study proposes to evaluate the subjective well-being factors of Latin

American migrants that decide for a developing country rather than a developed one. The

contribution of this research will be to determine whether the subject is able to attain a high

degree of happiness in a developing country or not, considering that the migrant encounters a

disadvantageous economic status and a social disjunction from its original home. New social

and economic factors are concerned in the receiving country and this could either benefit or

obstruct the development of subjective well-being of the migrant.

7

Purpose and Rationale of the Research

It is interesting to look over the field of subjective well-being in an international manner. For

instance, Easterlin (1973) was one of the first scholars who examined well-being patterns

across countries and displayed proof showing that countries which have more development in

welfare and income have happier people than in less developed countries. Nevertheless,

Easterlin found that the differences between the countries were not substantial if the basic needs

of the population of the less developed country were met. This last argument considers directly

the variables of income and economic development (Easterlin, 1973). In contrast, a study that

examined how social relations and structures can produce happiness or unhappiness in different

countries (Haller & Hadler, 2004) suggested that developed Western Countries show rather

low satisfaction and happiness levels. Additionally, they mentioned that some countries with a

poor economic background in Africa, Asia and Latin America appear to score high well-being

states among the population. This disparity implies that the variables that lead greater happiness

differ considerably depending on the social context of the country.

Following the country comparison approach, the researchers Helliwell, Layard and Sachs, who

conducted a migration study for the World Happiness report of 2018, stated that there are

considerable differences in happiness between countries, and that these gaps would highly

influence migration intentions. In the case of Latin America, the profile of migrants exposes

general dissatisfaction with life induced by discontent with wealth level, fear of unemployment,

and insecurity generated by the presence of crime (Graham & Markowitz, 2011). Latin

American emigrants, in general, present frustration with their economic situation (Graham et

al., 2011). We understand then that Latin American migrants will pursuit happiness by

searching higher income opportunities, but the issue with this decision arises when taking

account that Latin Americans operate different determinants of subjective well-being

(Yamamoto, 2016; Haller et al., 2004). According to Veenhoven’s (1995) livability theory,

when it comes to international comparison, wealthy countries would be more “liveable” than

poorer ones, thus the ones who decide to migrate to wealthier countries will have better

opportunities to be happy.

However, it is asserted that migrants who decide for better economically positioned countries

fail to consider important factors that will impact on their performance in the receiving country

8

(Bartram, 2011). Migrants who decide this path would have to experience a downgrade in their

social and economic status, where they would find clear disadvantages that might turn into

obstacles to their desired income escalation and could even be more difficult than the previous

situation in the origin-country. This troublesome escalation status growth is determined by

factors such as unemployment, unrecognized qualifications, prejudice from employers,

insufficient language skills (Portes & Bach., 1985), discrimination and isolation (Ying, 1996).

Comparisons of well-being between migrants and natives can also provide a good perspective

on these limitations. Safi (2010), by analyzing the European Social Survey data, posit that there

will always be an inequality of happiness between migrants and natives where migrants would

present less happiness even if they spent 20 years in the receiving country. Additionally, she

remarked that this trend could also apply up to the second generation of the immigrants. It is

not a surprise that integration appears to be a major component for embracing a successful life

in a foreign country. Bartram (2011) conducted a similar investigation in the U.S. and found

the same patterns of divergence of happiness among migrants and natives.

We can now find clear guidelines that suggest that migrating to a developed country cannot

guarantee a substantial gain of subjective well-being. Accounting this, the study proposes to

determine if the pursuit of happiness would be easier if the migrant’s destination is a developing

country with more similarities within culture and societal values. Perhaps, the likeliness that a

migrant can ensure happiness is much stronger in this scenario even though the likeliness of

achieving higher income is lower. Graham and Nikolova (2018), have given some statements

on the subject by expressing that Latin American migrants going to other Latin American

countries may acquire more terms of life evaluation than those who decide for a developed

country as cultural factors take a big roll. Thus, this study intends to further explore the matter

by delving into the special case of Venezuelans fleeing from the political and economic crisis

and then settling in Peru. Interesting points about the distinctions of subjective well-being

factors in Latin American societies can provide a meaningful contribution to the study field.

As previously mentioned in the introduction, Researcher Jorge Yamamoto said wealth and

income are not the strongest generators for happiness in Latin Americans and instead

collectivism, adaptability in social challenges and optimistic behaviors seem to be greater

boosters of wellness (Trejo et al., 2016). Nonetheless, as long as the crisis is disrupting and

hampering the lives of Venezuelans, the priorities of migrants will be centered in seeking better

income opportunities in order to assure the survival of them and their relatives. Possibly, the

results of the study will be greatly aligned with the Easterlin’s paradox (Easterlin, 1973) as the

9

Venezuelans would regain a better wellness state once they meet their basic needs, but the

comparison of subjective well-being to other groups might not show an important difference.

Alternatively, the possible increase of happiness produced by income might be deprived when

challenges and obstacles arise in the process of economic and social integration.

Aim and Research Questions

Concretely, this research will attempt to define the most relevant factors that impulse subjective

well-being among Venezuelans who migrate to Peru. By setting this target, the study will be

able to test whether a developing country’s background can contribute or obstruct the

development of subjective well-being of an incoming migrant. Comparisons to developed

countries will take place and the conclusions will conform the main contributions from this

study. In terms of social integration, there is a chance to confirm Graham’s statements (World

Happiness Report, 2018) about well-being when Latin Americans settle in other Latin

American countries and bring awareness of the benefits or disadvantages of this decision.

Again, comparisons of well-being will be performed, where the migrants subjective well-being

state will be compared to the native’s state. Additionally, the study will evaluate to what extent

income is taking part as a enhancer of happiness of Venezuelans in Peru and if other subjective

well-being factors are then taking a greater importance once the basic needs of the individual

are met. Finally, doing a comparison of subjective well-being between immigrants and natives

will also give a good perspective on the case.

Having established the aim and rationale behind this study and taking the Venezuelan exodus

as a source for the research experiment, the following research questions are proposed:

RQ1: Are migrants from developing countries able to improve their subjective well-being if

their destination is another developing country?

RQ2: Are the social, political and economic factors of a developing country beneficial or

unfavorable for the subjective well-being of migrant from another developing country?

10

RQ3: Is a developing country a better destination place than a developed country for a migrant

who seeks better well-being?

RQ4: Is income the biggest driver of subjective well-being migrant from a developing country

even after they meet their basic needs?

RQ5: Are immigrants from developing countries able to have a similar level of subjective well-

being than natives?

Hypothesis

According to the exposed research questions, the study proposes the following hypothesis:

H1: Migrants from developing countries will improve their subjective well-being if they

emigrate to another developing country

H2: The social, political and economic status of a developing country facilitate the gain of

subjective well-being of immigrants from another developing country

H3: A developing country would improve the subjective well-being of migrant better than a

developed country

H4: Social factors take more importance than income in the well-being of immigrants from

developing countries after they have met their basic needs

H5: Immigrants from developing countries are able to attain a similar subjective well-being

than natives

11

Methodology

Having discussed the measurements of subjective well-being, the study intends to validate the

hypotheses by directing a quantitative study. As previously expressed, the main goal of the

study is to evaluate whether a developing country would be more beneficial or unfavorable for

a immigrant of another developing country who wants to seek new opportunities. To this end,

the extensive Venezuelan migrations to Peru will serve to test the previously mentioned

hypothesis.

This quantitative research has the main function of measuring the subjective well-being level

of the Venezuelan immigrants in Peru. In order to accomplish this, a survey will be launched

in an online format where the participants will be able to answer from any device with access

to internet. This will allow the study to reach more participants and have a representative

sample for the data analysis. As the first signs of the Venezuelan migration crisis started in the

year 2015 (El Tiempo, 2018), the survey will be targeted to Venezuelan migrants who have

arrived to Peru since 2015. The questions that will be presented in the survey follow the

direction of the Cantril Self-Anchoring Scale (Cantril, 1965) which has been used as a reference

by many researchers (Veenhoven, 1993; Easterlin, 2001; Costa et al, 1980; Diener et al., 1985)

in order to evaluate subjective well-being of individuals. The measures are a representation of

the individual’s judgements of life throughout time and they are represented from a scale that

goes from 0 to 10 (Cantril,1965). The study considers this method as suitable for the fulfillment

of the hypothesis as it also allows to have a ground of comparison to international subjective

well-being reports such as the World Happiness Report (2018). The data collection will be

done with the online software Sphinx and the data will be processed with the SmartPLS

software, which provides tools for statistical analysis.

12

Literature Review

# Title Author(s) Year Published Contribution

1

Heterogeneity in the

Relationship between

Unemployment and

Subjective Well-Being: A

Quantile Approach

Binder, M.;

Coad, A. 2014

The Levy Economics

Institute Working Paper

Collection

Effect of Unemployment in

subjective well-being

2

Influence of Extraversion and

Neuroticism on Subjective

Well-Being: Happy and

Unhappy People

Costa, P.;

McCrae, R. 1980

Journal of Personality

and Social Psychology,

Vol. 38, No. 4, 668-678

Contribution of positive and

negative affect to global

happiness

3

Happiness and ‘economic

migration’: A comparison of

Eastern European migrants

and stayers

Bartram, D. 2013 Migration Studies 1 (2),

pp. 156-175

Comparison of subjective

well-being between migrants

and stayers

4

Economic development and

migration in Latin America,

1980-2013: A Study from

Data Envelopment Analysis

Navarro, J.;

Ayvar F.,

Zamora, A.

2016

Trace 70, cemca, pp.

149-164, ISSN: 0185-

6286

Migration trends of Latin

Americans

5 Subjective Well-Being Diener, E. 1984

Psychological Bulletin,

Vol. 95 , No. 3, pp. 542-

575

Basic theories of subjective

well-being

6 Income and Happiness:

Towards a Unified Theory Easterlin, R. 2001

The Economic Journal,

Vol. 111, pp. 465-484

Theory about relationship

between income and

subjective well-being

7 Aspirations and Happiness of

Potential Latin American

Immigrants

Graham, C.;

Markowitz, J. 2011

Journal of Social

Research & Policy, Vol.

2, Issue 2

Understanding the profile of

Latin American emigrants

8 Happiness, Markets, and

Democracy: Latin America in

Comparative Perspective

Graham, C.;

Pettinato, S. 2000

Center on Social and

Economic Dynamics,

Working Paper No. 13

Comparison of subjective

well-being between Latin

American and advanced

industrial countries

9

How social relations and

structures can produce

happiness and unhappiness:

an international comparative

analysis

Haller, M.;

Hadler, M. 2006

Social Indicators

Research, 75(2), pp.169-

216

Theory about social factors in

subjective well-being. The

contribution came mainly by

the comparison of nations

10 Personal Projects, Happiness,

and Meaning: On Doing Well

and Being Yourself

McGregor, I.;

Little,B. 1998

Journal of Personality

and Social Psychology ,

Vol. 74, No. 2, pp.494-

512

Theories of well-being,

happiness and meaning

13

11 Fuentes de felicidad: ¿Qué

hace feliz a la gente? Alarcon, R. 2002

Journal of Psychology

Universidad Catolica del

Peru (PUCP), Vol. 20,

2, 2002

Subjective well-being in

Peruvians

12 Life satisfaction and self-

employment: A matching

approach

Binder, M.;

Coad, A. 2010

Papers on economics

and evolution, No. 1020

Effect of self-employment in

subjective well-being

13 Is Happiness Relative? Veenhoven, R. 1991 Social Indicators

Research 24, pp.1-34

Theory and subjectivity of

well-being

14

The Cross-National Pattern

of Happiness: Test of

predictions implied in three

theories of happiness

Veenhoven, R. 1995

Social Indicators

Research, 1995, vol 34,

pp 33-68

Insights on the liveability

theory of Veenhoven

15

Immigrants’ life satisfaction

in Europe: between

assimilation and

discrimination

Safi, M. 2010

European Sociological

Review, 26, DOI:

10.1093/esr/jcp013

Important insights about status

of migrants in developed

countries

16 World Happiness Report

Helliwell, J;

Laard, R.; Sachs,

J

2018 World Happiness Report

A complete ranking of

happiness in the world along

many insights about migration

and Latin American well-

being

17 Handbook of Happiness

Research in Latin America

Trejo, D.;

Ruvalcaba, G. 2016

International Handbooks

of Quality-of-Life, DOI

10.1007

Different insights about

Subjective well-being studies

done in Latin America and

interesting approaches in

migration

14

Overview of Chapters

1. Abstract

2. Introduction

2.1. Background

2.2. Structure of the research

3. Subjective Well-being theories

3.1. Definitions

3.2. Theories

3.3. Measurements

4. Purpose and rationale of the research

4.1. Results from other researches

4.2. Objectives of the research

4.3. Hypothesis

5. Methodology

5.1 Quantitative methods

6. Display of results of the experiment

6.1. Interviews results

7. Analysis of results

7.1. Quantitative analysis

8. Conclusion

15

Plan of Work

The chart below represents how the remaining work for this research will be organized.

Date Tasks Description

31.10.2018 Exposé Handing in the exposé

06.11.2018 -

09.11.2018 Correction

Correcting mistakes after

evaluation of exposé

10.11.2018 -

13.11.2018

Research

Design,

Interview

participants

Design of the questionnaire for

the quantitative

14.11.2018 -

30.11.2018 Launch of

the survey

Sending the survey to

participants

30.11.2019 -

21.12.2018 Data

Analysis

Data analysis, redaction of

results and discussion

22.12.2018 -

02.01.2018 Break Christmas Break

03.01.2018 -

21.01.2018 Final thesis

Writting conclusion, handing

in the final version of the

master thesis

16

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