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Heterogeneity in Subjective Wellbeing: An Application to Occupational Allocation in Africa

  • Paolo Falco

    ()

  • William F. Maloney

    ()

  • Bob Rijkers

    ()

  • Mauricio Sarrias

    ()

By exploiting recent advances in mixed (stochastic parameter) ordered probit estimators and a unique longitudinal dataset from Ghana, this paper examines the distribution of subjective wellbeing across sectors of employment. We find little evidence for the overall inferiority of the small firm informal sector relative to the formal salaried sector at the conditional mean. Moreover, the estimated underlyingrandom parameter distributions unveil substantial latent heterogeneity in subjective wellbeing around the central tendency that fixed parameter models cannot detect. All job categories contain substantial shares of both relatively happy and disgruntledworkers.

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File URL: http://economia.uniandes.edu.co/publicaciones/dcede2013-01.pdf
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Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 010494.

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Length: 52
Date of creation: 17 Jan 2010
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Handle: RePEc:col:000089:010494
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