A Micro Level Study Explaining Happiness Level in Pakistan

Abstract

The aim of this paper is to propose a Happiness Index for Pakistan by looking into the determinants of the complex idea of happiness attainment. The concept of happiness dwells on dimensions ranging from financial well-being to subjective well-being and it would be very crude if we treat this variable through an objective lens of economic well-being. We aim to find how trust on people, confidence in institutions, personality dynamics, health status, and income level can impact happiness and satisfaction level of individuals. In this paper, we collected primary data from various areas (rural and urban) of Pakistan through survey with sample size of 763. The binary logistic regression framework has been used to model Happiness Index as it has been converted into dichotomous level. Results showed positive and significant relationship for Big Five traits (extraversion and neuroticism), confidence in Armed Forces, life satisfaction, and age whereas negative association of Happiness Index was observed with press media, and trust on strangers. From a policy perspective, it is suggested that the Government of Pakistan estimate Happiness Index on a national level. This will make sure that in transition, effects of different complex variables, such as political regimes, growth encouraging steps, development policies can be gauged; their nexus with Happiness can be delineated.