A Note on Happiness and Life Satisfaction in Malaysia
Gross Domestic Product (GDP) has long been an indicator of economic growth. There is an on-going debate on whether high growth increases well-being. The terms ‘happiness’ and ‘life satisfaction’ are often used interchangeably to explain the subjective well-being levels of individuals. This study examines if both happiness and life satisfaction of Malaysian citizens are explained by the same factors based on a sample size of 1289 adopted from the 6th waves of World Values Survey (2010-2014). Outcomes from the ordered logit regression analysis indicate that income has strong positive relationship with happiness and life satisfaction. This study supports Easterlin paradox partially, which indicates a positive association between happiness and income in the short-term. Other common income related factors that have positive and strong significant impact on both happiness and life satisfaction are health status, employment and satisfaction on financial situation of household.