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Subjective well-being, comparisons and reference groups in post-apartheid South Africa

Subjective well-being, comparisons and reference groups in post-apartheid South Africa. Marisa Coetzee University of Stellenbosch South Africa 27 October 2011. Outline. Background Theoretical Framework Data Results Conclusions. Background. Subjective well-being / happiness (SWB)

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Subjective well-being, comparisons and reference groups in post-apartheid South Africa

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  1. Subjective well-being, comparisons and reference groups in post-apartheid South Africa Marisa Coetzee University of Stellenbosch South Africa 27 October 2011

  2. Outline • Background • Theoretical Framework • Data • Results • Conclusions

  3. Background • Subjective well-being / happiness (SWB) • Kingdon and Knight 2007 – the determinants of SWB in South Africa using 1993 PSLSD (SALDRU) data • Conclusions (briefly): • Relative income more NB than absolute income • Relative income more NB than other relative measures (e.g. unemployment and education) • Households are altruistic towards other households within the same residential cluster but compete with households in the same district and racial group • South Africans’ reference groups divided along racial lines

  4. Theoretical Framework • Post apartheid, intra-race inequality has increased, while inter-race inequality decreased slightly. • Have all attempts by the SA government to integrate society been successful? • Pierre du Toit and Hennie Kotzè’s Liberal Democracy and Peace in South Africa (2011) • Racial divide in apartheid legislation further entrenched by affirmative action – “the re-racialization of society” • However, signs of racial integration from WVS data: • Increased tolerance towards other race groups • How does this affect South Africans’ reference group?

  5. Data • National Income Dynamics Study (NIDS) • Sample of 7305 households (31170 individuals) • All individuals aged >=16 were asked about their SWB • First Wave (2008)

  6. NIDS 2008

  7. The question is … • However, no study verifying the results of Kingdon and Knight for post-apartheid SA • Is race still a deciding factor in determining the SWB of South Africans or has democracy changed the reference group? • Replicate the analysis by Kingdon and Knight (2007) but using NIDS data from 2008 • Issues: • NIDS has 10-point scale versus 5-point scale for PSLSD (SALDRU) data • NIDS SWB question was asked at individual level, SALDRU at household level • Have to therefore include individual- and household-level variables

  8. Subjective well-being and relative income across spatial reference groups Notes: Reported results are coefficients from ordered probit regressions on subjective well-being categories. A full set of control variables are included, but not reported. *** significance at 1% level, ** significance at 5% level, * significance at 10% level.

  9. Race-specific relative income Notes: Reported results are coefficients from ordered probit regressions on subjective well-being categories. A full set of control variables are included, but not reported. *** significance at 1% level, ** significance at 5% level, * significance at 10% level.

  10. The effect of Perceived Relative Income on subjective well-being Notes: A full set of control variables are included, but not reported. *** significance at 1% level, ** significance at 5% level, * significance at 10% level.

  11. Perceived relative income and subjective well-being above and below the poverty line Notes: A full set of control variables are included, but not reported. *** significance at 1% level, ** significance at 5% level, * significance at 10% level.

  12. Conclusions • Results from Kingdon and Knight’s study remain unchanged in relation to spatial reference groups • Altruism appears to be one possible explanation for the positive effect of education and employment levels of other households • However, racial division of reference groups seems to have changed • Appears to be pointing in the direction of a more racially integrated society

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