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Decentralisation and Citizen Happiness: A Multilevel Analysis of Self-rated Happiness in Indonesia

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  • Sujarwoto Sujarwoto
  • Gindo Tampubolon

Abstract

The effect of decentralisation reform on citizen happiness in the context of a developing country remains under-investigated. We study this effect by examining the experience of Indonesia. Data comes from the Indonesian Family Life Survey 2007 which comprises face-to-face interviews with the adult population in Indonesia (N individuals = 29,024, N districts = 262). Multilevel analysis is used to examine the effect of fiscal and political decentralisation on citizen happiness, and shows that fiscal decentralisation is significantly associated with citizen happiness, while political decentralisation is not; these are robust to the inclusion of individual and district variables related to happiness. The findings suggest that decentralisation increases the happiness of citizens through the improved capacity of districts to deliver public services, rather than through the improved opportunities of citizens to engage in direct political participation. Copyright Springer Science+Business Media Dordrecht 2015

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  • Sujarwoto Sujarwoto & Gindo Tampubolon, 2015. "Decentralisation and Citizen Happiness: A Multilevel Analysis of Self-rated Happiness in Indonesia," Journal of Happiness Studies, Springer, vol. 16(2), pages 455-475, April.
    • Handle: RePEc:spr:jhappi:v:16:y:2015:i:2:p:455-475
    DOI: 10.1007/s10902-014-9518-3
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    2. Sunitha Singh & Sowmya Kshtriya & Reimara Valk, 2023. "Health, Hope, and Harmony: A Systematic Review of the Determinants of Happiness across Cultures and Countries," IJERPH, MDPI, vol. 20(4), pages 1-68, February.
    3. Sarah Flèche, 2015. "Distaste for Centralization: Evidence from a Quasi-Natural Experiment in Switzerland," CEP Discussion Papers dp1383, Centre for Economic Performance, LSE.
    4. Nadiia Davydenko & Natalia Wasilewska & Svitlana Boiko & Mirosław Wasilewski, 2022. "Development of Rural Areas in Ukraine in the Context of Decentralization: An Empirical Study," Sustainability, MDPI, vol. 14(11), pages 1-26, May.
    5. Rus’an Nasrudin & Qisha Quarina & Teguh Dartanto, 2022. "Revisiting the Energy-Happiness Paradox: A Quasi-Experimental Evidence of Electricity Access in Indonesia," Journal of Happiness Studies, Springer, vol. 23(7), pages 3549-3576, October.
    6. Sujarwoto Sujarwoto & Gindo Tampubolon & Adi Cilik Pierewan, 2018. "Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(4), pages 927-945, December.
    7. Leonardo E. Letelier-S & José L. Sáez-Lozano, 2020. "Expenditure Decentralization: Does It Make Us Happier? An Empirical Analysis Using a Panel of Countries," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    8. Juan Chen & Lin Gong & Shenghua Xie, 2021. "Psychological Distress in Urbanizing China: How Does Local Government Effectiveness Matter?," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    9. Julien Hanoteau & Gandhi Pawitan & Virginie Vial, 2021. "Does social capital reduce entrepreneurs' petty corruption? Evidence across Indonesian regions," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 651-670, June.
    10. Sha Fan & Renuka Mahadevan, 2023. "Optimistic income expectations and meeting those expectations: What matters for well‐being in a developing country?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(2), pages 115-132, May.

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