Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country

Understanding individual and contextual factors of happiness and life satisfaction in a low- and middle-income country setting are important in the study of subjective well-being. This study aims to examine individual and contextual factors of happiness and life satisfaction in one of the happiest countries in the world: Indonesia. Data comes from the Indonesian Family Life Survey 2014 (N _individual = 31,403; N _household = 15,160; N _district = 297). Results from a three-level ordered logit model show that factors of happiness and life satisfaction are beyond individual factors. Happiness and life satisfaction are also strongly associated with factors within an individual’s household and at the district government level. Individuals living in households with better economic welfare are happier and more satisfy. Poor health and unemployment have a detrimental effect on happiness and life satisfaction. Individuals living in districts whose governments’ better deliver public services are happier and more satisfy. In contrast, those living in areas with conflict and violence is less happy and satisfy. Individual religiosity and community social capital in the form of indigenous tradition benefit individual happiness and life satisfaction.     

Does Happiness Pays? A Longitudinal Family Life Survey

Most of the research on happiness has documented that income, marriage, employment and health affect happiness. Very few studies examine whether happiness itself affect income, marriage, employment and health. This study does so, benefiting from data drawn from the panel longitudinal Indonesian Family Life Survey (IFLS) 2007 and 2014. The survey includes 23,776 individuals from 15,067 households living in about 262 neighborhoods between 2007 and 2014. The findings show that happier Indonesians in 2007 earned more money, were more likely to be married, were less likely to be divorced or unemployed, and were in better health when the survey was conducted again seven years later. Policy makers may consider that increasing citizen happiness is vital to achieve citizen success on labor markets, to improve their job performance and to maintain their health.