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Detecting Unobserved Heterogeneity in the Relationship Between Subjective Well-Being and Satisfaction in Various Domains of Life Using the REBUS-PLS Path Modelling Approach: A Case Study

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  • Luca Zanin

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Abstract

In this article, we propose a model to estimate the direct and indirect effects of the relationship between subjective well-being and satisfaction in various domains of life using a partial least squares path modelling approach in a structural equation model framework. A drawback of these models is that they assume homogeneous behaviour over the observed set of units. To address this issue, Trinchera (Ph.D. thesis, University of Naples, 2007 ) and Esposito Vinzi et al. (Appl Stoch Models Bus Ind 28:439–458, 2008 ) proposed an algorithm, called the response-based unit segmentation in partial least squares (REBUS-PLS) path modelling, to detect sources of heterogeneity in both measurement and structural models. The REBUS-PLS allows researchers to identify classes of units with similar behaviours (with respect to the postulated model) and to estimate one model for each identified class (so-called ‘local models’). Applying the REBUS-PLS algorithm to our case study, we detected three main classes of units with similar behaviours and estimated three local models. We found, for example, that in the estimated model for the entire sample, the relationship between satisfaction with family and social life and subjective well-being is statistically significant. However, this result was not confirmed in all of the estimated local models. Copyright Springer Science+Business Media B.V. 2013

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  • Luca Zanin, 2013. "Detecting Unobserved Heterogeneity in the Relationship Between Subjective Well-Being and Satisfaction in Various Domains of Life Using the REBUS-PLS Path Modelling Approach: A Case Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(1), pages 281-304, January.
  • Handle: RePEc:spr:soinre:v:110:y:2013:i:1:p:281-304
    DOI: 10.1007/s11205-011-9931-5
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    References listed on IDEAS

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    1. repec:spr:soinre:v:132:y:2017:i:2:d:10.1007_s11205-016-1322-5 is not listed on IDEAS
    2. Luca Zanin & Rosalba Radice & Giampiero Marra, 2013. "Estimating the Effect of Perceived Risk of Crime on Social Trust in the Presence of Endogeneity Bias," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 523-547, November.
    3. Luca Zanin, 2016. "On Italian Households’ Economic Inadequacy Using Quali-Quantitative Measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 59-88, August.
    4. Lin, Yi-Chen & Hwang, Ruey-Ching & Deng, Wen-Shuenn, 2015. "Heterogeneity in the relationship between subjective well-being and its determinants over the life cycle: A varying-coefficient ordered probit approach," Economic Modelling, Elsevier, vol. 49(C), pages 372-386.

    More about this item

    Keywords

    PLS path modelling; REBUS-PLS; Satisfaction in various domains of life; Subjective well-being; Unobserved heterogeneity; C20; C30; C80; D01;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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