Heterogeneity in Subjective Wellbeing: An Application to Occupational Allocation in Africa

52 Pages Posted: 7 Mar 2013

See all articles by Paolo Falco

Paolo Falco

University of Oxford - Centre of the Study of African Economies

William F. Maloney

World Bank - Poverty and Economic Management Unit; IZA Institute of Labor Economics; World Bank - Development Research Group (DECRG)

Bob Rijkers

World Bank

Mauricio Sarrias

Universidad Católica Del Norte

Multiple version iconThere are 3 versions of this paper

Date Written: January 21, 2013

Abstract

By exploiting recent advances in mixed (stochastic parameter) ordered probit estimators and a unique longitudinal dataset from Ghana, this paper examines the distribution of subjective wellbeing across sectors of employment. We find little evidence for the overall inferiority of the small firm informal sector relative to the formal salaried sector at the conditional mean. Moreover, the estimated underlying random parameter distributions unveil substantial latent heterogeneity in subjective wellbeing around the central tendency that fixed parameter models cannot detect. All job categories contain substantial shares of both relatively happy and disgruntled workers.

Keywords: Subjective Wellbeing, Mixed Ordered Probit, Self-employment, Informality

JEL Classification: C35, J2, J3, J41, L26, I32, 017

Suggested Citation

Falco, Paolo and Maloney, William F. and Rijkers, Bob and Sarrias, Mauricio, Heterogeneity in Subjective Wellbeing: An Application to Occupational Allocation in Africa (January 21, 2013). Documento CEDE No. 2013-01. Available at SSRN: https://ssrn.com/abstract=2229328 or http://dx.doi.org/10.2139/ssrn.2229328

Paolo Falco (Contact Author)

University of Oxford - Centre of the Study of African Economies ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

William F. Maloney

World Bank - Poverty and Economic Management Unit ( email )

1818 H Street NW
Washington, DC 20433
United States
202-473-6340 (Phone)
202-522-0054 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Bob Rijkers

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Mauricio Sarrias

Universidad Católica Del Norte

Avenida Angamos 0610
Antofagasta, II Region 1270709
Chile

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