The Relationship Between Economic and Subjective Wellbeing Indicators in Peru
- 516 Downloads
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.
KeywordsWellbeing Poverty Household income Happiness Life satisfaction Peru Migration
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.
- Banco Central de Reserva del Perú. (2007). Inflation rates, www.bcrp.gob.pe/.
- 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
- Copestake, J. (ed). (2008). Wellbeing and development in Peru: local and global views confronted. New York: Palgrave Macmillan.Google Scholar
- 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
- Frey, B. S., & Stutzer, A. (2002). What can economist learn from happiness research? (pp. 402–435). XL: Journal of Economic Literature.Google Scholar
- Graham, C., & Pettinato, S. (2002). Happiness and hardship. Washington: Brookings Institution Press.Google Scholar
- Guillen-Royo, M. (2007). Consumption and wellbeing: Motives for consumption and needs satisfiers in Peru. Unpublished PhD Thesis, University of Bath.Google Scholar
- 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
- Hirata, J. (2001). Happiness and Economics. Unpublished PhD thesis, Maastricht University.Google Scholar
- 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
- 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/.
- INEI (Instituto Nacional de Estadística e Informática). (2006), Poverty statistics, www.inei.gob.pe/.
- Layard, R. (2005). Happiness: lessons from a new science. London: Allen Lane.Google Scholar
- 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
- 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
- Schuldt, J. (2004). Bonanza macroeconomica y malestar microeconomico. Centro de Investigacion de la Universidad del Pacifico, Lima.Google Scholar
- Veblen, T. (1994). Conspicuous consumption. In The Theory of the Leisure Class (pp. 68–101). New York: Penguin Group.Google Scholar
- WeD (Wellbeing in Developing Countries Research Group) (2007). WeD toolbox: The WeDQoL. www.welldev.org.uk.
- 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
- 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.