Skip to main content
Log in

Happiness, Socioeconomic Status, and Family Functioning in South African Households: a Structural Equation Modelling Approach

  • Published:
Applied Research in Quality of Life Aims and scope Submit manuscript

Abstract

This paper examines how SES relates to individual happiness, while also controlling for family functioning; the latter measured by the Family Attachment and Changeability Index 8 (FACI8). An individual-, household-, and subjective SES index are developed via multiple correspondence analyses (MCA). Using data from the 2012 South African Social Attitudes Survey (SASAS), the paper employs structural equation modelling (SEM) to explore the relationship between happiness, SES, and family functioning. Multiple-group SEM (MGSEM) is employed to examine the association between happiness and family functioning across quartiles of the three SES indices. The results reveal that higher SES is significantly related to greater happiness, with the role of household- and subjective SES being stronger than individual SES. Furthermore, improved levels of family changeability are positively associated with happiness, whereas there is no relationship between happiness and family attachment. Overall, levels of family changeability and individual happiness are likely to benefit from improvements in socioeconomic status.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. Although quintiles are often used in applied work, this paper uses quartiles instead. This choice was driven by preliminary analyses that highlighted potential issues in employing quintiles when examining the SES indices, in particular due to the strong relationship between SES and race in South Africa. As an example, it is often the case that the lowest quintiles were made up of only Black and Coloured respondents, whereas the highest quintiles consist mainly of White and Indian respondents. To allow for more meaningful analyses and a more even sample size distribution across SES categories, quartiles were more appropriate. Even when using quartiles, though, race had to be excluded from the multiple-group models, as discussed in "Data Analysis" section. This was because only one White person and no Indian/Asian persons fell into the first two SES quartiles, with the majority in the bottom two quartiles being Black and Coloured individuals. Thus, in some instances the bottom two quartiles represent only certain racial groups. The lack of observations in the White- and Indian/Asian samples in the bottom two quartiles also complicated model convergence.

  2. The SEM results are also reported in Table format since the graphical results are too cluttered.

  3. The MGSEM analyses exclude race as covariate based on the skewed distribution of SES across South Africa’s racial groups. For example, in some cases only one White person and no Indian/Asian persons fell into the first two SES quartiles, with the majority in the bottom two quartiles being Black, followed by Coloured individuals. This implies that in some instances the bottom two quartiles represent only certain racial groups. The lack of observations in the White- and Indian/Asian samples in the bottom two quartiles complicated model convergence.

  4. Although the S-B scaled χ 2 difference test (Satorra and Bentler 1994) is generally preferable, the software used in the analysis does not currently allow for estimation of the S-B χ 2 in the examination of group constraints. Thus, the MGSEM analyses employ the default maximum likelihood χ 2 difference test statistic. Although this statistic does not correct for non-normality, its maximum likelihood estimates are nevertheless relatively robust even in the presence of non-normality (Acock 2013).

References

  • Aarons, G. A., McDonald, E. J., Connelly, C. D., & Newton, R. R. (2007). Assessment of family functioning in Caucasian and Hispanic Americans: Reliability, validity, and factor structure of the family assessment device. Family Process, 46(4), 557–569. https://doi.org/10.1111/j.1545-5300.2007.00232.x.

    Article  Google Scholar 

  • Acock, A. C. (2013). Discovering structural equation modeling using Stata (revised ed.). Texas: Stata Press.

  • Alesina, A., & Giuliano, P. (2007). The power of the family. NBER working paper no. 13051. Cambridge: National Bureau of Economic Research.

    Google Scholar 

  • Alesina, A., & Giuliano, P. (2010). The power of the family. Journal of Economic Growth, 15, 93–125.

    Article  Google Scholar 

  • Alesina, A., & Giuliano, P. (2013). Family ties. NBER working paper no. 18966. Massachusetts: National Bureau of Economic Research.

    Google Scholar 

  • Altman, D. G., & Bland, J. M. (1994). Quartiles, quintiles, centiles, and other quintiles. BMJ, 309, 996.

    Article  Google Scholar 

  • Amoateng, A. Y., Heaton, T. B., & Kalule-Sabiti, I. (2007). Living arrangements in South Africa. In A. Y. Amoateng & T. B. Heaton (Eds.), Families and households in post-apartheid South Africa: Socio-demographic perspectives (pp. 43–59). Cape Town: HSRC Press.

    Google Scholar 

  • Anderson, C., Kraus, M. W., Galinsky, A. D., & Keltner, D. (2012). The local-ladder effect: Social status and subjective well-being. Psychological Science, 23(7), 764–771.

    Article  Google Scholar 

  • Babakus, E., Ferguson, C. E., & Jöreskog, K. G. (1987). The sensitivity of confirmatory maximum likelihood factor analysis to violations of measurement scale and distributional assumptions. Journal of Marketing Research, 24(2), 222–228.

    Article  Google Scholar 

  • Barbarin, O. A., & Khomo, N. (1997). Indicators of economic status and social capital in South African townships: What do they reveal about the material and social conditions in families of poor children? Childhood, 4(2), 193–222.

    Article  Google Scholar 

  • Beauducel, A., & Herzberg, P. Y. (2006). On the performance of maximum likelihood versus means and variance adjusted weighted least squares estimation in CFA. Structural Equation Modeling, 13(2), 186–203.

    Article  Google Scholar 

  • Botha, F., & Booysen, F. (2014). Family functioning and life satisfaction and happiness in south African households. Social Indicators Research, 119(1), 163–182.

    Article  Google Scholar 

  • Botha, F., Wouters, E., & Booysen, F. (2016). Validity and reliability of the family attachment and changeability index (FACI8) in South Africa. Mimeo: University of Antwerp.

    Google Scholar 

  • Botha, F., Wouters, E. & Booysen, F. (2017a). Family functioning and socioeconomic status in south African families: A test of the social causation hypothesis. Social Indicators Research, doi: https://doi.org/10.1007/s11205-017-1600-x.

    Article  Google Scholar 

  • Botha, F., Wouters, E. & Booysen, F. (2017b). Satisfaction with family life in South Africa: The role of socioeconomic status. Journal of Happiness Studies, forthcoming.

  • Conger, R. D., & Donnellan, M. B. (2007). An interactionist perspective on the socioeconomic context of human development. Annual Review of Psychology, 58, 175–199.

    Article  Google Scholar 

  • Conger, R. D., Conger, K. J., & Martin, M. J. (2010). Socioeconomic status, family processes, and individual development. Journal of Marriage and Family, 72, 685–704.

    Article  Google Scholar 

  • Cundiff, J. M., Smith, T. W., Uchino, B. N., & Berg, C. A. (2013). Subjective social status: Construct validity and associations with psychosocial vulnerability and self-rated health. International Journal of Behavioral Medicine, 20, 148–158.

    Article  Google Scholar 

  • Dauphin, A., El Lahga, A.-R., Fortin, B., & Lacroix, G. (2011). Are children decision-makers within the household? Economic Journal, 121, 871–903.

    Article  Google Scholar 

  • DeFrain, J., & Asay, S. M. (2007). Strong families around the world: An introduction to the family strengths perspective. Marriage & Family Review, 41(1–2), 1–10.

    Article  Google Scholar 

  • Diener, E. (2000). Subjective well-being: The science of happiness and a proposal for a national index. American Psychologist, 55(1), 34–43.

    Article  Google Scholar 

  • Diener, E., & Ryan, K. (2009). Subjective well-being: A general overview. South Africa Journal of Psychology, 39(4), 391–406.

    Article  Google Scholar 

  • Dolan, C. V. (1994). Factor analysis of variables with 2, 3, 5, and 7 response categories: A comparison of categorical variable estimators using simulated data. British Journal of Mathematical and Statistical Psychology, 47(2), 309–326.

    Article  Google Scholar 

  • Dolan, P., Peasgood, T., & White, M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of Economic Psychology, 29, 94–122.

    Article  Google Scholar 

  • Feeny, S., McDonald, L., & Posso, A. (2014). Are poor people less happy? Findings from Melanesia. World Development, 64, 448–459.

    Article  Google Scholar 

  • Fotso, J.-C., & Kuate-Defo, B. (2005). Measuring socioeconomic status in health research in developing countries: Should we be focusing on households, communities or both? Social Indicators Research, 72, 189–237.

    Article  Google Scholar 

  • Frey, B. S., & Gallus, J. (2016). Happiness: Research and policy considerations. In T. Tachibanaki (Ed.), Advances in happiness research: A comparative perspective (pp. 9–21). Japan: Tokyo.

    Chapter  Google Scholar 

  • Frey, B. S., & Stutzer, A. (2002). What can economists learn from happiness research? Journal of Economic Literature, 40(2), 402–435.

    Article  Google Scholar 

  • Frijters, P., & Beatton, T. (2012). The mystery of the U-shaped relationship between happiness and age. Journal of Economic Behavior and Organization, 58, 525–542.

    Article  Google Scholar 

  • Fuentes, N., & Rojas, M. (2001). Economic theory and subjective well-being: Mexico. Social Indicators Research, 53(3), 289–314.

    Article  Google Scholar 

  • Georgiades, K., Boyle, M. H., Jenkins, J. M., Sanford, M., & Lipman, E. (2008). A multilevel analysis of whole family functioning using the McMaster Family Assessment Device. Journal of Family Psychology, 22(3), 344–354.

    Article  Google Scholar 

  • Gerdtham, U.-G., & Johannesson, M. (2001). The relationship between happiness, health, and socio-economic factors: Results from Swedish micro data. The Journal of Socio-Economics, 30, 553–557.

    Article  Google Scholar 

  • Greeff, A. P. (2000). Characteristics of families that function well. Journal of Family Issues, 21(8), 948–962.

    Article  Google Scholar 

  • Greenacre, M. J. (2006). Multiple correspondence analysis and related methods. Boca Raton: Chapman & Hall.

    Book  Google Scholar 

  • Guillen-Royo, M., Velazco, J., & Camfield, L. (2013). Basic needs and wealth as independent determinants of happiness: An illustration from Thailand. Social Indicators Research, 110, 517–536.

    Article  Google Scholar 

  • Han, C-K., & Rothwell, D. W. (2014). Savings and family functioning since the 2008 recession: An exploratory study of Singapore. International Social Work, 57(6), 630–644.

    Article  Google Scholar 

  • Harbaugh, W. T., Krause, K., & Berry, T. R. (2001). GARP for kids: On the development of rational choice behavior. American Economic Review, 91(5), 1539–1545.

    Article  Google Scholar 

  • Howe, L. D., Hargreaves, J. R., & Huttly, S. R. A. (2008). Issues in the construction of wealth indices for the measurement of socio-economic position in low-income countries. Emerging Themes in Epidemiology, 5(3), 1–14.

    Google Scholar 

  • Hsu, H.-C., Chang, W.-C., Chong, Y.-S., & An, J. S. (2016). Happiness and social determinants across age cohorts in Taiwan. Journal of Health Psychology, 21(9), 1828–1839.

    Article  Google Scholar 

  • Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1–55.

    Article  Google Scholar 

  • Human Sciences Research Council (HSRC). (2012). 2012 south African social attitudes survey. Pretoria: Human Sciences Research Council.

    Google Scholar 

  • Hutchinson, S. R., & Olmos, A. (1998). Behavior of descriptive fit indexes in confirmatory factor analysis using ordered categorical data. Structural Equation Modeling, 5(4), 344–364.

    Article  Google Scholar 

  • Johnson, D. R., & Creech, J. C. (1983). Ordinal measures in multiple indicator models: A simulation study of categorization error. American Sociological Review, 48(3), 398–407.

    Article  Google Scholar 

  • Kabudula, C. W., Houle, B., Collinson, M. A., Kahn, K., Tollman, S., & Clark, S. (2016). Assessing changes in household socioeconomic status in rural South Africa, 2001-2013: A distributional analysis using household asset indicators. Social Indicators Research. https://doi.org/10.1007/s11205-016-1397-z.

    Article  Google Scholar 

  • Kolenikov, S., & Angeles, G. (2009). Socioeconomic status measurement with discrete proxy variables: Is principal component analysis a reliable answer? Review of Income and Wealth, 55(1), 128–165.

    Article  Google Scholar 

  • Leibbrandt, M., Finn, A., & Woolard, I. (2012). Describing and decomposing post-apartheid income inequality in South Africa. Development Southern Africa, 29(1), 19–34.

    Article  Google Scholar 

  • Levinson, A. (2013). Happiness, behavioral economics, and public policy. NBER working paper no. 19329. Cambridge: National Bureau of Economic Research.

    Book  Google Scholar 

  • Lundberg, S., Romich, J. L., & Tsang, K. P. (2009). Decision-making by children. Review of Economics of the Household, 7, 1–30.

    Article  Google Scholar 

  • MacKerron, G. (2012). Happiness economics from 35 000 feet. Journal of Economic Surveys, 26(4), 705–735.

    Article  Google Scholar 

  • Mansfield, A. K., Dealy, J. A., & Keitner, G. I. (2013). Family functioning and income: Does low-income status impact family functioning? The Family Journal: Counseling and Therapy for Couples and Families, 21(3), 297–305.

    Article  Google Scholar 

  • Masquillier, C., Wouters, E., Mortelmans, D., & Booysen, F. (2014). Families as catalysts for peer adherence support in enhancing hope for people living with HIV/AIDS in South Africa. Journal of the International AIDS Society, 17, 1–10.

    Article  Google Scholar 

  • McCubbin, H. I., Thompson, A. I., & Elver, K. M. (1996). Family attachment and changeability index 8 (FACI8). In H. I. McCubbin, A. I. Thompson, & M. A. McCubbin (Eds.), Family assessment: Resiliency, coping and adaptation: Inventories for research and practice (pp. 725–751). Madison: University of Wisconsin.

    Google Scholar 

  • Messer, L. C., Laraia, B. A., Kaufman, J. S., Eyster, J., Holzman, C., Culhane, J., Elo, I., Burke, J. G., & O’Campo, P. (2006). The development of a standardized neighbourhood deprivation index. Journal of Urban Health, 83(6), 1041–1062.

    Article  Google Scholar 

  • Møller, V. (2013). South African quality of life trends over three decades, 1980–2010. Social Indicators Research, 113, 915–940.

    Article  Google Scholar 

  • Møller, V., & Saris, W. (2001). The relationship between subjective well-being and domain satisfactions in South Africa. Social Indicators Research, 55, 97–114.

    Article  Google Scholar 

  • Morris, M. L., & Blanton, P. (1998). Predictors of family functioning among clergy and spouses: Influences of social context and perceptions on work-related stressors. Journal of Child and Family Studies, 7(1), 27–41.

    Article  Google Scholar 

  • Niyonsenga, T., Trepka, M. J., Lieb, S., & Maddox, L. M. (2013). Measuring socioeconomic inequality in the incidence of AIDS: Rural-urban considerations. AIDS and Behavior, 17, 700–709.

    Article  Google Scholar 

  • Nkosi, B., & Daniels, P. (2007). Family strengths: South Africa. Marriage and Family Review, 41(1–2), 11–26.

    Article  Google Scholar 

  • Onwujekwe, O. (2005). Inequities in healthcare seeking in the treatment of communicable endemic diseases in Southeast Nigeria. Social Science & Medicine, 61, 455–463.

    Article  Google Scholar 

  • Olson, D. H., & Gorall, D. M. (2003). Circumplex model of marital and family systems. In F. Walsh (Ed.), Normal Family Processes (third ed., pp. 514–547). New York: Guilford Press.

  • Patterson, J. M. (2002). Integrating family resilience and family stress theory. Journal of Marriage and Family, 64, 349–360.

    Article  Google Scholar 

  • Phongsavan, P., Chey, T., Bauman, A., Brooks, R., & Silove, D. (2006). Social capital, socioeconomic status and psychological distress among Australian adults. Social Science & Medicine, 63, 2546–2561.

    Article  Google Scholar 

  • Powdthavee, N. (2007). Happiness and the standard of living: The case of South Africa. In L. Bruni & P. L. Porta (Eds.), Handbook on the economics of happiness (pp. 447–486). UK: Edward Elgar.

    Google Scholar 

  • Reising, M. M., Watson, K. H., Hardcastle, E. J., Merchant, M. J., Roberts, L., Forehand, R., & Compas, B. E. (2013). Parental depression and economic disadvantage: The role of parenting in associations with internalizing and externalizing symptoms in children and adolescents. Journal of Child and Family Studies, 22, 335–343.

    Article  Google Scholar 

  • Rhemtulla, M., Brosseau-Liard, P. E., & Savalei, V. (2012). When can categorical variables be treated as continuous? A comparison of robust continuous and categorical SEM estimation methods under suboptimal conditions. Psychological Methods, 17(3), 354–373.

    Article  Google Scholar 

  • Rothwell, D. W., & Han, C.-K. (2010). Exploring the relationship between assets and family stress among low-income families. Family Relations, 59(4), 396–407.

    Article  Google Scholar 

  • Sarracino, F. (2013). Determinants of subjective well-being in high and low income countries: Do happiness equations differ across countries? The Journal of Socio-Economics, 42, 51–66.

    Article  Google Scholar 

  • Satorra, A., & Bentler, P. M. (1994). Corrections to test statistics and standard errors on covariance structure analysis. In A. v. Eye & C. C. Clogg (Eds.), Latent variables analysis (pp. 399–419). Thousand Oaks: Sage.

    Google Scholar 

  • Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., & King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: A review. Journal of Educational Research, 99(6), 323–338.

    Article  Google Scholar 

  • Sheppard, Z. A., Norris, S. A., Pettifor, J. M., Cameron, N., & Griffiths, P. L. (2009). Approaches for assessing the role of household socioeconomic status on child anthropometric measures in urban South Africa. American Journal of Human Biology, 21, 48–54.

    Article  Google Scholar 

  • Sourial, N., Wolfson, C., Zhu, B., Quail, J., Fletcher, J., Karunananthan, S., Bandeen-Roche, K., Béland, F., & Bergman, H. (2010). Correspondence analysis is a useful tool to uncover the relationships among categorical variables. Journal of Clinical Epidemiology, 63, 638–646.

    Article  Google Scholar 

  • Statistics South Africa. (2015). Living conditions of households in South Africa: An analysis of household expenditure and income data using the LCS 2014/2015. Statistical release P0310. Pretoria: Statistics South Africa.

    Google Scholar 

  • Streiner, D. L. (2003). Starting at the beginning: An introduction to coefficient alpha and internal consistency. Journal of Personality Assessment, 80(1), 99–103.

    Article  Google Scholar 

  • Subramanian, S. V., Kim, D., & Kawachi, I. (2005). Covariation in the socioeconomic determinants of self rated health and happiness: A multivariate multilevel analysis of individuals and communities in the USA. Journal of Epidemiology and Community Health, 59(8), 664–669.

    Article  Google Scholar 

  • Tiffin, P. A., Pearce, M., Kaplan, C., Fundudis, T., & Parker, L. (2007). The impact of socioeconomic status and mobility on perceived family functioning. Journal of Family and Economic Issues, 28, 653–667.

    Article  Google Scholar 

  • Waite, L. J. (2000). The family as a social organization: Key ideas for the twenty-first century. Contemporary Sociology, 29(3), 463–469.

    Article  Google Scholar 

  • Williams, D. T., Cheadle, J. E., & Goosby, B. J. (2015). Hard times and heartbreak: Linking economic hardship and relationship distress. Journal of Family Issues, 36(7), 924–950.

    Article  Google Scholar 

  • Wouters, E., Masquillier, C., Ponnet, K., & Booysen, F. (2014). A peer adherence support intervention to improve the antiretroviral treatment outcomes of HIV patients in South Africa: The moderating role of family dynamics. Social Science & Medicine, 113, 145–153.

    Article  Google Scholar 

  • Yang, Y., & Gustafsson, J.-E. (2004). Measuring socioeconomic status at individual and collective levels. Educational Research and Evaluation, 10(3), 259–288.

    Article  Google Scholar 

Download references

Acknowledgements

We thank seminar participants at the University of Johannesburg as well as two anonymous referees for helpful comments and suggestions on a previous version of this paper. This research was supported by Rhodes University (Grants PGSD05/2015, PGSD07/2015, and RC2017). We also thank Ben Roberts at the Human Sciences Research Council (HSRC) for providing access to the data used in this paper.

Funding

This research was funded by Rhodes University (Grants PGSD05/2015, PGSD07/2015, and RC2017).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ferdi Botha.

Ethics declarations

Conflict of Interest

The authors declare that they have no conflict of interest.

Appendix

Appendix

Table 12 Components of SES indices
Table 13 Summary statistics and MCA weights of SES index components
Table 14 Family attachment and changeability (FACI8) item averages
Table 15 Goodness-of-fit results for SES group CFA models
Table 16 Measurement invariance results

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Botha, F., Wouters, E. & Booysen, F. Happiness, Socioeconomic Status, and Family Functioning in South African Households: a Structural Equation Modelling Approach. Applied Research Quality Life 13, 947–989 (2018). https://doi.org/10.1007/s11482-017-9568-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11482-017-9568-x

Keywords

Navigation