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Subjective Wellbeing and Institutions: The Case of Rural Ethiopia

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  • Tsegay Gebrekidan Tekleselassie

    () (Ethiopian Development Research Institute)

Abstract

This study focuses on the role of religiosity, general and political trust, local participation, and welfare metrics on wellbeing in rural areas using the Ethiopian Rural Household Survey. Ordered probit methods that account for Heteroscedasticity reveal distinctive correlates of overall life satisfaction and momentary happiness. Broader socio-economic factors such as religiosity and political governance strongly predict life satisfaction, while largely welfare metrics drive momentary happiness. The differential role of institutions on life satisfaction and momentary happiness is in comport with Deaton’s (2008) and Stevenson and Wolfers’s (2008) proposition that life satisfaction and happiness are not synonymous.

Suggested Citation

  • Tsegay Gebrekidan Tekleselassie, 2017. "Subjective Wellbeing and Institutions: The Case of Rural Ethiopia," Working Papers 016, Ethiopian Development Research Institute.
  • Handle: RePEc:etd:wpaper:016
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    References listed on IDEAS

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    Keywords

    Institutions; Subjective Wellbeing; Ordered Probit; Developing Countries;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D60 - Microeconomics - - Welfare Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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