Advertisement

Applied Research in Quality of Life

, Volume 4, Issue 2, pp 155–177 | Cite as

The Relationship Between Economic and Subjective Wellbeing Indicators in Peru

  • James CopestakeEmail author
  • Monica Guillen-Royo
  • Wan-Jung Chou
  • Tim Hinks
  • Jackeline Velazco
Article

Abstract

Previous studies in Peru have identified apparent mismatches between people’s perceptions of their wellbeing and indicators of their material welfare. This paper draws on primary data from relatively poor localities in Central Peru to investigate these further. We first present estimates of respondents’ household income, expenditure and poverty status. This data is then compared with individual responses to a standard happiness question. We find people are generally happier in rural areas even though poverty in incidence there is greater. Additional data on different distinct aspects of subjective wellbeing is then used to explain the apparent paradox. We find rural respondents are more satisfied with the place where they live and progress in raising a family, while those in urban areas have higher material and related aspirations which they find hard to fulfil.

Keywords

Wellbeing Poverty Household income Happiness Life satisfaction Peru Migration 

Notes

Acknowledgements

This paper is a product of the Wellbeing in Developing Countries (WeD) research group, prepared for its final conference at Bath University in June 2007. We are grateful for help from many WeD colleagues both in the UK and Peru, as well as to the UK Economic and Social Research Council (ESRC) for supporting WeD under grant M5692255001.

References

  1. Banco Central de Reserva del Perú. (2007). Inflation rates, www.bcrp.gob.pe/.
  2. Biswas-Diener, R., & Diener, E. (2001). Making the best of a bad situation: Satisfaction in the slums of Calcutta. Social Indicators Research, 55, 34–43.CrossRefGoogle Scholar
  3. Clark, A. E., Oswald, A. J., & Warr, P. B. (1996). Is Job-Satisfaction U-Shaped in Age? Journal of Occupational and Organizational Psychology, 69(1), 57–81.Google Scholar
  4. Copestake, J. (ed). (2008). Wellbeing and development in Peru: local and global views confronted. New York: Palgrave Macmillan.Google Scholar
  5. Cummins, R. A. (1995). On the trail of the gold standard for subjective well-being. Social Indicators Research, 35, 179–200.CrossRefGoogle Scholar
  6. Di Tella, R., MacCulloch, R. J., & Oswald, A. J. (2003). The macroeconomics of happiness. Review of Economics and Statistics, 85(4), 809–827.CrossRefGoogle Scholar
  7. Diener, E., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of Personality Assessment, 49(1), 71–75.Google Scholar
  8. Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: three decades of progress. Psychological Bulletin, 125(2), 276–302.CrossRefGoogle Scholar
  9. Diener, E., Nickerson, C., Lucas, R. E., & Sandvik, E. (2002). Dispositional affect and job outcomes. Social Indicators Research, 59, 229–259.CrossRefGoogle Scholar
  10. Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all? Journal of Economic Behaviour and Organisation, 27(1), 35–48.CrossRefGoogle Scholar
  11. Ferrer-i-Carbonell, A., & Frijters, P. (2004). How important is methodology for the estimates of the determinants of happiness? The Economic Journal, 114, 641–659.CrossRefGoogle Scholar
  12. Frank, R. H. (2004). How not to buy happiness. Daedalus, 133(2), 69–79.CrossRefGoogle Scholar
  13. Frey, B. S., & Stutzer, A. (2002). What can economist learn from happiness research? (pp. 402–435). XL: Journal of Economic Literature.Google Scholar
  14. Graham, C., & Felton, A. (2006). Inequality and Happiness: Insights from Latin America. Journal of Economic Inequality, 4, 107–122.CrossRefGoogle Scholar
  15. Graham, C., & Pettinato, S. (2002). Happiness and hardship. Washington: Brookings Institution Press.Google Scholar
  16. Guillen-Royo, M. (2007). Consumption and wellbeing: Motives for consumption and needs satisfiers in Peru. Unpublished PhD Thesis, University of Bath.Google Scholar
  17. Herrera, J., Razafindrakoto, M., & Roubaud, F. (2006). The determinants of subjective poverty: a comparative analysis between Madagascar and Peru. Paris: Working Paper, DIAL (development institutions and analysis for the long-term).Google Scholar
  18. Hirata, J. (2001). Happiness and Economics. Unpublished PhD thesis, Maastricht University.Google Scholar
  19. INEI (Instituto Nacional de Estadística e Informática). (2001). La pobreza en el Perú: una visión departmental [Poverty in Peru: a regional perspective]. Lima: INEI.Google Scholar
  20. INEI (Instituto Nacional de Estadística e Informática). (2002). Condiciones de vida en el Peru: evolucion 1997–2001 [Living standards in Peru: changes from 1997–2001], www.inei.gob.pe/.
  21. INEI (Instituto Nacional de Estadística e Informática). (2006), Poverty statistics, www.inei.gob.pe/.
  22. Kingdon, G. G., & Knight, J. (2006). Subjective well-being poverty vs. income poverty and capabilities poverty? Journal of Development Studies, 42(7), 1199–1224.CrossRefGoogle Scholar
  23. Layard, R. (2005). Happiness: lessons from a new science. London: Allen Lane.Google Scholar
  24. McGregor, J. A. (2007). ‘Researching Human Wellbeing: From Concepts to Methodology’. Chapter 14, pp 316–350. In Mc Gregor Gough (Ed.), Wellbeing in Developing Countries: From Theory to Research. Cambridge University Press: Cambridge.Google Scholar
  25. Ravallion, M., & Lokshin, M. (2001). Identifying welfare effects from subjective questions. Economica, 68, 335–357.CrossRefGoogle Scholar
  26. Rojas, M. (2007). The complexity of wellbeing: a life-satisfaction conception and a domains-of-life approach. In I. R. Gough & J. A. McGregor (Eds.). Wellbeing in developing countries. Cambridge: Cambridge University Press.Google Scholar
  27. Schuldt, J. (2004). Bonanza macroeconomica y malestar microeconomico. Centro de Investigacion de la Universidad del Pacifico, Lima.Google Scholar
  28. Staw, B., Sutton, R., & Pelled, L. (1994). Employee positive emotion and favorable outcomes in the workplace. Organization Science, 5, 51–71.CrossRefGoogle Scholar
  29. Veblen, T. (1994). Conspicuous consumption. In The Theory of the Leisure Class (pp. 68–101). New York: Penguin Group.Google Scholar
  30. Veenhoven, R. (1991). Is happiness relative? Social Indicators Research, 24, 1–34.CrossRefGoogle Scholar
  31. Warr, P. B. (1992). Age and Occupational Well-being. Psychology and Aging, 7(1), 37–45.CrossRefGoogle Scholar
  32. WeD (Wellbeing in Developing Countries Research Group) (2007). WeD toolbox: The WeDQoL. www.welldev.org.uk.
  33. Yamamoto, J. (2006). Subjective wellbeing in the corridor. Lima: Psychology Dept, Pontificate Catholic University of Peru. Presented at the WeD Peru workshop in Huaychulo in June.Google Scholar
  34. Yamamoto, J. (2007). Subjective wellbeing from a developing country perspective: a multi-level approach. Bath: Wellbeing in Developing Countries Research Group. www.welldev.org.uk/conference2007/peru-book.htm.

Copyright information

© Springer Science+Business Media B.V./The International Society for Quality-of-Life Studies (ISQOLS) 2009

Authors and Affiliations

  • James Copestake
    • 1
    Email author
  • Monica Guillen-Royo
    • 2
  • Wan-Jung Chou
    • 1
  • Tim Hinks
    • 1
  • Jackeline Velazco
    • 3
  1. 1.Wellbeing in Developing Countries (WeD) ESRC Research GroupUniversity of BathBathUK
  2. 2.Centre for Development and the EnvironmentUniversity of OsloOsloNorway
  3. 3.Department of EconomicsUniversity of GironaGironaSpain

Personalised recommendations