Happiness and its determinants in Pakistan at micro level

Abstract

The aim to this paper is to evaluate the happiness index of Pakistan through finding its determinants. Through this research we access the factors that could affect individual’s happiness level from both economics and psychological perspective. To assist the economic theories of scarcity and rational choice, individuals doing what they want to do best in order to increase their utility and satisfaction, which on whole increase efficiency in economy. We aim to find how trust on people and in different organizations , our personality, health status and income level can impact happiness and satisfaction level of individuals. In this paper, we collect primary data from Pakistan through survey with sample size of 763. We incorporate subjective happiness scale, life satisfaction, big five personality traits, health, trust and social support, material wellbeing and income and other socioeconomic variables in this paper. We estimated the model through binary logistic regression. Results showed positive and significant relationship for extraversion, neuroticism, confidence in armed forces, life satisfaction, age and negative association with press media and trust on strangers with respect to happiness index. Government of Pakistan need to estimate happiness index and national level to have better understanding of citizen’s needs and analyzing direct and indirect impact of macro and micro economic policies.