Exploring the determinants of happiness: Evidence from rural Thailand

and rural Ethiopia Monica Guillen Royo and Jackeline Velazco

Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia

OVERVIEW

• Introduction• Determinants of happiness• Basic needs in rural Thailand and Ethiopia• The empirical model• Results • Concluding remarks

INTRODUCTION

• Paper objective: Explore role played by basic needs, demographic and social factors in explaining happiness in rural Thailand and Ethiopia.

• Theoretical framework: Theory of human needs developed by Doyal and Gough (1991)

• Primary Sources: Household data collected as part of Wed Research Group, Bath University– 924 rural households in Ethiopia– 922 rural households in Thailand

Determinants of Happiness in Developing Countries

Latin American Graham (2005)

Russia Graham (2000)

South Africa Kingdon et al. (2003)

Rural China Knight et al.

(2004)

Mexico Rojas (2004)

Variables

Relationship Relationship Relationship Relationship Relationship Household Head Characteristics

Age Education Male Married Employment status (self-employed) Minority Income Unemployed African/colored/indian

(-)

(-)* (-)* (+)*

(-) (-)

(-)

(-)

(+)* (+)

(+)* (+)

(+) (-)

(+) (+)

(+) (-) (-)

(-) (+) (-) (+)

(+)

(-)

(+)*

(+)

(+)

Household Characteristics Number of children < 16 Urban household

(+) (-)

Basic Needs/Assets Health index Wealth index Asset value

(+) (+)

(+)

(+)

(+)

(+)

(+) Perception Variables

Household’s wealth in village (rich) Household’s wealth in village (above average)

(+) (+)

Number of observations Pseudo R square

15,209 0.062

5,134 0.033

8,279 0.09

9,112 0.18

1,540 0.085

Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia

ETHIOPIA AND THAILAND AT A GLANCE

Indicators Ethiopia (2003) Thailand (2004) Population (millions) 68.6 62.4 GNI per capita (US$) 90 2,440 Poverty (% of population) 44 13.1 Rural population (% total population) 84 68 Life expectancy at birth (years) 42 69

Basic needs satisfactionTotal rural

Ethiopia

Total rural

ThailandHealthChronic illness 31.0% 16.0%(% of households affected)Major disability 31.0% 8.0%(% households affected)

EducationIlliteracy 56.5% 8.0%Non forma1 2.8% 2.0%Primary 11.6% 55.0%secondary 1.5% 24.0%Higher education 5.8% 6.0%

HousingElectricity 14.0% 98.0%Clean water 53.2% 89.0%Sanitation 12.7% 92.0%Piped water 0.4% 61.0%

FoodFood shortages 86.6% 29.0%

ConnectionsKin and fictive kin 80.7% 97.0%Local community 55.3% 59.0%Wider world 78.0% 57.0%

WealthAsset index (average score) 1.7% 2.8%

Long term shocksDrought/floods 50.4% 29.7%Serious illness of family members

28.8% 9.3%

Death of family member 26.6% 7.6%Total households 924 922Source: RANQ-Ehiopia(2004),

Basic Needs Satisfaction in rural Ethiopia and Thailand

Total rural

Ethiopia

Total rural

Thailand

Very happy 9.4% 5.0%Fairly happy 61.3% 76.0%Not too happy 29.3% 19.0%

Total (number) 923 918

Self-reported Happiness (%)

Source: RANQ-Thailand(2004), WeD Research Group, University of Bath, UK

Total rural housholds

Ethiopia

Total rural housholds Thailand

Family size (average) 5.12 4.68

Head of household

Gender (in %)Male 77.1% 76.7%Female 22.9% 23.3%Total (number) 923 921

Age groups (in %)

a) 20-39 42.0% 26.1%b) 40-59 35.3% 46.3%c)Above 60 22.7% 27.6%Total (number) 916 920

Religion (in %)Christian 47.4% -Islam 52.6% 32.1%Buddhist - 67.6%Total (number) 857 901

Main ecnomic activity (in %)

Farmer 77.1% 60.0%

Household worker 15.0%

Trader 4.3% 5.3%

Total (number) 760 922

Socio-demographic characteristics, 2004

Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia

THE EMPIRICAL MODEL

• Modelling individual perceptions

• Probit model: Choice between two discrete alternatives. Happy/unhappy.

THE EMPIRICAL MODEL

What are the Determinants of

Happinessin rural Thailand

and Ethiopia?

Household headCharacteristics

AgeSex

Marital statusReligion

EducationEmployment status

HouseholdCharacteristics

Family sizeNumber of children

Basic Needs/assetsAccess to housing

facilitiesAccess to education

facilitiesAccess to health care

facilitiesWealth (asset index)

Food shortageshocks

Perception VariablesHousehold wealth

compared withvillage: poor, average

and rich

Household income fiveyears ago: better, same

and worse

Social ResourcesHouseholds take part

in organisations

Household membersmade visits outside

The community

Household uses massmedia to be informed

RESULTS: DETERMINATS OF GLOBAL HAPPINESS IN RURAL THAILAND AND ETHIOPIA

Thailand Ethiopia Variables Relationship Marginal

Effect Relationship Marginal

effect Household Head Characteristics

Age Education Employment status (self-employed) Married

(-) (+) (-)

-8% 1% -4%

(-) (-) (+) (+)

-1% -10% 12% 9%

Basic Needs Food shortage in the last 12 months Asset index Household faced a shock last 5 years Land size (has.) Access to stock cattle

(-) (+) (-)

-5% 4% -4%

(-)* (+)

(-)* (-) (+)

4%

-7% 8%

Perception Variables Household’s wealth in village (rich) Household’s wealth in village (above average) Household income is worse than 5 years ago

(+) (+) (-)

14% 11% -6%

(+) (+)

26% 27%

Number of observations Pseudo R square

908 0.199

921 0.194

*Variable not significant

Exploring the determinants of happiness: Evidence from rural Thailand and rural Ethiopia

CONCLUDING REMARKS

• When basic needs are not met happiness is generally reduced.

• Material wealth/resources positive impact on happiness

• Perception variables important determining factor

• There was significant variation across country on the role of education

• Need for further work exploring the meaning of the causal relationships