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

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  • Paolo Falco

    ()

  • William F. Maloney

    ()

  • Bob Rijkers

    ()

  • Mauricio Sarrias

    ()

Abstract

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.

Suggested Citation

  • Paolo Falco & William F. Maloney & Bob Rijkers & Mauricio Sarrias, 2010. "Heterogeneity in Subjective Wellbeing: An Application to Occupational Allocation in Africa," DOCUMENTOS CEDE 010494, UNIVERSIDAD DE LOS ANDES-CEDE.
  • Handle: RePEc:col:000089:010494
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Louise Fox, 2015. "Are African Households Heterogeneous Agents?; Stylized Facts on Patterns of Consumption, Employment, Income and Earnings for Macroeconomic Modelers," IMF Working Papers 15/102, International Monetary Fund.
    2. repec:jss:jstsof:v:074:i10 is not listed on IDEAS
    3. International Labour Office., 2013. "Global employment trends for youth 2013 : a generation at risk," Global Employment Trends Reports 994816973402676, International Labour Office, Economic and Labour Market Analysis Department.
    4. Falco, Paolo & Maloney, William F. & Rijkers, Bob & Sarrias, Mauricio, 2015. "Heterogeneity in subjective wellbeing: An application to occupational allocation in Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 137-153.
    5. Stefano A. Caria & Paolo Falco, 2014. "Does the Risk of Poverty Reduce Happiness?," Development Working Papers 363, Centro Studi Luca d'Agliano, University of Milano, revised 07 Apr 2014.
    6. Sarah Bridges & Louise Fox & Alessio Gaggero & Trudy Owens, "undated". "Labour Market Entry and Earnings: Evidence from Tanzanian Retrospective Data," Discussion Papers 13/05, University of Nottingham, CREDIT.
    7. Falco, Paolo & Haywood, Luke, 2016. "Entrepreneurship versus joblessness: Explaining the rise in self-employment," Journal of Development Economics, Elsevier, pages 245-265.
    8. Markussen, Thomas & Fibaek, Maria & Tarp, Finn & Nguyen, Do Anh Tuan, 2014. "The happy farmer: Self-employment and subjective well-being in rural Vietnam," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Subjective Wellbeing; Mixed Ordered Probit; Self-employment; Informality; Developing Country Labor Markets; Africa;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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