Socio-economic determinants of subjective wellbeing of Indians in the post-liberalization era: evidence from the world value survey

Philosophies of contentment, peace and happiness underpin Indian culture. However, the low ranking of India in the World Happiness Report is a matter of concern. The objective of the study was to explore the determinants of subjective wellbeing (SWB) in India. We used data from 5 waves of world value surveys consisting of 11 Indian states in the post liberalized era (1990–2014). The dependent variables were happiness and life satisfaction. In addition, several socio-economic variables were also adopted to assess their impacts on SWB. The estimated results from the heteroscedastic ordered probit model showed that there is a significant impact of demographic and socio-economic variables on the happiness and life satisfaction of Indians. Factors such as high-income levels, financial satisfaction, freedom of choice and life control showed a positive impact on both happiness and life satisfaction of individuals. Moreover, belief in religion, family, friends, trust of most people and a meaningful life were also positively associated with happiness of Indians. Furthermore, male, elderly and unhealthy people were more unhappy and dissatisfied with their life. This study contributes to the literature by identifying several determinants of SWB for Indians after the country’s integration of the international market. The government needs to collect happiness related data during the census so that the country can implement happiness enhancing policies.