Abstract
This paper examines the impact of income expectations and the extent to which these expectations are met, on subjective well-being. Using three waves of panel data on Indonesia, on average for the population sample, expectations had asymmetric effects on well-being, with pessimistic expectations having a strong adverse effect compared to a statistically weak positive effect of optimism. However, there were important differences in these results. For example, optimism improves only females’ and not males’ well-being while pessimism has the reverse effect on the gender’s decrease in well-being. Interestingly, there was no difference in these effects between rural and urban residents and exceeding expectations rarely affects well-being of any subgroup. On the other hand, unmet expectations reduced well-being for all subgroups and we explored the importance of social capital in mediating this negative effect. Results on social capital highlight the need for a gendered agenda and to consider the rural-urban divide in policies aimed at improving well-being.
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
The Physiology, Kinesiology and Psychology of Wellness in its Social Context
KEYWORDS
Happiness, Optimism and Pessimism, Unmet and Beaten expectations, Social capital
