What makes Indonesians happy?

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1 1 1 (adicilik@uny.ac.id) International Conference on Cross-Cultural Undertanding of Well-being

2 Outline Setting the stage 1 Setting the stage 2 3 4

3 Happiness in Indonesia? Indonesia provides an interesting case for the examination of individual and contextual sources of happiness in developing country settings. World Bank (2013) categorises Indonesia as a lower middle-income country with Gross Domestic Product (GDP) $868.3 billion in 2013 Indonesians are also the world's most content people (Ipsos 2011) Indonesia reported the highest levels of happiness, with 51% of people claiming to be `very happy' The 2012 Happy Planet Index also found Indonesia to be among the happiest countries (ranking 14th of 151 countries)

4 Happiness in Indonesia? Indonesia provides an interesting case for the examination of individual and contextual sources of happiness in developing country settings. World Bank (2013) categorises Indonesia as a lower middle-income country with Gross Domestic Product (GDP) $868.3 billion in 2013 Indonesians are also the world's most content people (Ipsos 2011) Indonesia reported the highest levels of happiness, with 51% of people claiming to be `very happy' The 2012 Happy Planet Index also found Indonesia to be among the happiest countries (ranking 14th of 151 countries)

5 Happiness in Indonesia? Indonesia provides an interesting case for the examination of individual and contextual sources of happiness in developing country settings. World Bank (2013) categorises Indonesia as a lower middle-income country with Gross Domestic Product (GDP) $868.3 billion in 2013 Indonesians are also the world's most content people (Ipsos 2011) Indonesia reported the highest levels of happiness, with 51% of people claiming to be `very happy' The 2012 Happy Planet Index also found Indonesia to be among the happiest countries (ranking 14th of 151 countries)

6 Happiness in Indonesia? Indonesia provides an interesting case for the examination of individual and contextual sources of happiness in developing country settings. World Bank (2013) categorises Indonesia as a lower middle-income country with Gross Domestic Product (GDP) $868.3 billion in 2013 Indonesians are also the world's most content people (Ipsos 2011) Indonesia reported the highest levels of happiness, with 51% of people claiming to be `very happy' The 2012 Happy Planet Index also found Indonesia to be among the happiest countries (ranking 14th of 151 countries)

7 Happiness in Indonesia? Indonesia provides an interesting case for the examination of individual and contextual sources of happiness in developing country settings. World Bank (2013) categorises Indonesia as a lower middle-income country with Gross Domestic Product (GDP) $868.3 billion in 2013 Indonesians are also the world's most content people (Ipsos 2011) Indonesia reported the highest levels of happiness, with 51% of people claiming to be `very happy' The 2012 Happy Planet Index also found Indonesia to be among the happiest countries (ranking 14th of 151 countries)

8 Studies of happiness in Indonesia Try to measure well-being: BPS with Happiness Survey 2013 (65,11%) Personal factors and well-being Neglect contextual factors Dominated by psychological studies

9 Studies of happiness in Indonesia Try to measure well-being: BPS with Happiness Survey 2013 (65,11%) Personal factors and well-being Neglect contextual factors Dominated by psychological studies

10 Studies of happiness in Indonesia Try to measure well-being: BPS with Happiness Survey 2013 (65,11%) Personal factors and well-being Neglect contextual factors Dominated by psychological studies

11 Studies of happiness in Indonesia Try to measure well-being: BPS with Happiness Survey 2013 (65,11%) Personal factors and well-being Neglect contextual factors Dominated by psychological studies

12 What makes people happy Demographic factors Social companionships Employment status Environmental factors Governmental factors

13 What makes people happy Demographic factors Social companionships Employment status Environmental factors Governmental factors

14 What makes people happy Demographic factors Social companionships Employment status Environmental factors Governmental factors

15 What makes people happy Demographic factors Social companionships Employment status Environmental factors Governmental factors

16 What makes people happy Demographic factors Social companionships Employment status Environmental factors Governmental factors

17 Data Setting the stage The Indonesian Family Life Survey (IFLS) West 2007 (N = 29,055 in 262 districts) The Indonesian Family Survey (IFLS) East 2012 (N = 5,910 in 55 districts) Village Potential Statistics (Podes) 2006 and 2011 The District Fiscal Data 2006 and 2011

18 Data Setting the stage The Indonesian Family Life Survey (IFLS) West 2007 (N = 29,055 in 262 districts) The Indonesian Family Survey (IFLS) East 2012 (N = 5,910 in 55 districts) Village Potential Statistics (Podes) 2006 and 2011 The District Fiscal Data 2006 and 2011

19 Data Setting the stage The Indonesian Family Life Survey (IFLS) West 2007 (N = 29,055 in 262 districts) The Indonesian Family Survey (IFLS) East 2012 (N = 5,910 in 55 districts) Village Potential Statistics (Podes) 2006 and 2011 The District Fiscal Data 2006 and 2011

20 Data Setting the stage The Indonesian Family Life Survey (IFLS) West 2007 (N = 29,055 in 262 districts) The Indonesian Family Survey (IFLS) East 2012 (N = 5,910 in 55 districts) Village Potential Statistics (Podes) 2006 and 2011 The District Fiscal Data 2006 and 2011

21 Measures and analytic strategy Taken all together, how would you say things are these days: `very happy', `pretty happy', `not too happy' or `very unhappy'? Multilevel model to investigate both individual and contextual eects of happiness

22 Measures and analytic strategy Taken all together, how would you say things are these days: `very happy', `pretty happy', `not too happy' or `very unhappy'? Multilevel model to investigate both individual and contextual eects of happiness

23 Multilevel Model Setting the stage

24 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

25 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

26 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

27 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

28 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

29 : Individual and Contextual Eects Age, female, per capita household expenditure, employment status, years of schooling, married, social ties, social participation and religiosity have positive association with happiness Household expenditure and household size are signicantly positively associated with happiness Indonesians report being happier when their district authority proves itself more capable of providing better public services. Individuals living in richer district as indicated by higher GDP are less happy. Pollution density, local conicts and violence have negative relationship with happiness 12.5% of the variation occurs between household and 10% occurs between district unit

30 : Interaction Eects We estimate cross-level interaction between district source of happiness (spending for public services and social capital) and individual level variables (elderly, poor people, poor health, low educated, unemployed, divorced and widowed people) Low educated, unemployed, and older people living in district with high spending on public services is happier Rich social capital benets for elderly, unemployed and widowed people The generalised reciprocity aspect of social capital which is illustrated by the sociocultural ethic of gotong royong is among the important predictor of happiness

31 : Interaction Eects We estimate cross-level interaction between district source of happiness (spending for public services and social capital) and individual level variables (elderly, poor people, poor health, low educated, unemployed, divorced and widowed people) Low educated, unemployed, and older people living in district with high spending on public services is happier Rich social capital benets for elderly, unemployed and widowed people The generalised reciprocity aspect of social capital which is illustrated by the sociocultural ethic of gotong royong is among the important predictor of happiness

32 : Interaction Eects We estimate cross-level interaction between district source of happiness (spending for public services and social capital) and individual level variables (elderly, poor people, poor health, low educated, unemployed, divorced and widowed people) Low educated, unemployed, and older people living in district with high spending on public services is happier Rich social capital benets for elderly, unemployed and widowed people The generalised reciprocity aspect of social capital which is illustrated by the sociocultural ethic of gotong royong is among the important predictor of happiness

33 : Interaction Eects We estimate cross-level interaction between district source of happiness (spending for public services and social capital) and individual level variables (elderly, poor people, poor health, low educated, unemployed, divorced and widowed people) Low educated, unemployed, and older people living in district with high spending on public services is happier Rich social capital benets for elderly, unemployed and widowed people The generalised reciprocity aspect of social capital which is illustrated by the sociocultural ethic of gotong royong is among the important predictor of happiness

34 Conclusions Setting the stage Happiness can be predicted not only by personal factors but also by contextual factors. Multilevel analysis provides the most appropriate basis for developing a detailed contextual description of how such contextual factors aect citizen's happiness. The quality of district administration seems more important for citizen wellbeing than the provision of local democracy and the freedoms it implies

35 Conclusions Setting the stage Happiness can be predicted not only by personal factors but also by contextual factors. Multilevel analysis provides the most appropriate basis for developing a detailed contextual description of how such contextual factors aect citizen's happiness. The quality of district administration seems more important for citizen wellbeing than the provision of local democracy and the freedoms it implies

36 Conclusions Setting the stage Happiness can be predicted not only by personal factors but also by contextual factors. Multilevel analysis provides the most appropriate basis for developing a detailed contextual description of how such contextual factors aect citizen's happiness. The quality of district administration seems more important for citizen wellbeing than the provision of local democracy and the freedoms it implies

37 Future research Setting the stage Much more detailed into small area (village) level investgation Include spatial perspective on how space matters on happiness The need of longitudinal study to understand the dynamics of happiness among indonesians.

38 Future research Setting the stage Much more detailed into small area (village) level investgation Include spatial perspective on how space matters on happiness The need of longitudinal study to understand the dynamics of happiness among indonesians.

39 Future research Setting the stage Much more detailed into small area (village) level investgation Include spatial perspective on how space matters on happiness The need of longitudinal study to understand the dynamics of happiness among indonesians.

40 Appendix References I Bjørnskov, C., Dreher, A., and Fischer, J. (2010). Formal institutions and subjective wellbeing, Revisiting the cross-country evidence. European Journal of Political Economy, 26(1), Graham, C. (2009). Happiness around the world. Oxford: Oxford University Press. The Indonesian Ministry of Finance (2008). Sistem Informasi Keuangan Daerah di Indonesia. Jakarta: The Indonesian Ministry of Finance. Veenhoven, R. (2000). Freedom and happiness: A comparative study in forty-four nations in the early 1990s. In Diener, E. and Suh, E. (Eds.), Culture and subjective wellbeing. Cambridge MA/London: The MIT Press.

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