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Remittances and subjective well-being: A static versus dynamic panel approach to happiness

Author

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  • Mdu Biyase

    (University of Johannesburg, Johannesburg, South Africa.)

  • Bianca Fisher

    (University of Johannesburg, Johannesburg, South Africa.)

  • Marinda Pretorius

    (University of Johannesburg, Johannesburg, South Africa.)

Abstract

Using all five waves of the National Income Dynamics Study (NIDS) panel dataset, we examine the effect of domestic remittances on the static and dynamic subjective well-being (SWB) of recipient individuals in South Africa, by using a random effects ordered probit model that accounts for individual heterogeneity. Moreover, we check the robustness of our static model results by making use of an instrumental variable for migrants’ remittances. Two major empirical findings emerge from this paper: firstly, domestic remittances are consistently found to have a positive and statistically significant impact on the happiness of recipient individuals. Moreover, this finding persists in both the static and dynamic panel models. Secondly, the coefficient on lagged SWB (derived from the dynamic model) is found to be positive and statistically significant, confirming that SWB today is significantly influenced by SWB in the past.

Suggested Citation

  • Mdu Biyase & Bianca Fisher & Marinda Pretorius, 2021. "Remittances and subjective well-being: A static versus dynamic panel approach to happiness," Migration Letters, Migration Letters, vol. 18(6), pages 761-774, November.
    • Handle: RePEc:mig:journl:v:18:y:2021:i:6:p:761-774
    DOI: https://doi.org/10.33182/ml.v18i6.917
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    Cited by:

    1. Biyase, Mduduzi & Naanwaab , Cephas, 2023. "Rural–Urban Differences in Subjective Well-Being for South Africa: Static and Dynamic Approaches," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(1), pages 1-30, March.

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