Subjective Well-Being in India: Socioeconomic and Demographic Determinants and Differentials

ABSTRACT

Background: In the face of impressive performance in development indicators but poor ranking in the human development indicators, the subjective well-being in India has not been increasing commensurately with the rise in income. The lack of direct long-run relationship between income and happiness in India is a paradox that needs a deeper understanding of the influence of socioeconomic and demographic factors on subjective well-being over space and time. Methodology: The data from five waves of the World Values Survey of India for 24 years over the period 1990-2014 are used. The socioeconomic and demographic determinants of subjective well-being are analysed using chi-square test. The distribution of subjective well-being indicators - happiness, life satisfaction and financial satisfaction - at the group level are examined. Results: The average levels of life satisfaction and happiness have not increased commensurately with income and economic growth over time in India. The happiness level remains constant and life satisfaction and financial satisfaction declined with sharp variations across background characteristics of people and over space and time. Happiness distribution is left-skewed and life satisfaction is related, but not uniformly, with income. Significant differences in well-being exist with respect to education, income, social class, religion, age, marital status and health, but not much with employment and gender. Conclusion: The subjective well-being levels of people of India are influenced by their socioeconomic status with varying degree among different socioeconomic and demographic groups.