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Citation Information

Type Working Paper - EDWRG Working Paper Series
Title Remittances and subjective well-being: A static and dynamic panel approach to single-item and multi-item measures of happiness
Author(s)
Volume 2020
Issue 04
Publication (Day/Month/Year) 2020
URL https://www.uj.ac.za/faculties/cbe/economics-and-econometrics/edwrg/RePEc/ady/wpaper/Working Paper​Series/Biyase, Fisher, Pretorius- Remittances and Subjective Well-being.pdf
Abstract
Using all five waves of the National Income Dynamics Study (NIDS) panel dataset, we examine the effect of domestic remittances on the static and dynamic subjective well-being (SWB) of recipient individuals in South Africa,by using a random effects ordered probit model that accounts for individual heterogeneity. Moreover, we check the robustness of our static model results by making use of an instrumental variable for migrants’ remittances. Two major empirical findings emerge from this paper: firstly, domestic remittances are consistently found to have a positive and statistically significant impact on the happiness of recipient individuals. Moreover,this finding persists in both the static and dynamic panel models. Secondly, the coefficient on lagged SWB (derived from the dynamic model) is found to be positive and statistically significant, confirming that SWB today is significantly influenced by SWB in the past.

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