Conal Smith

An empirical investigation into the determinants of life satisfaction in New Zealand

The past decade has seen an increasing body of evidence emerge that subjective wellbeing can be empirically measured through relatively straightforward questions on self-reported happiness or life satisfaction carried in sample surveys. This paper analyses the determinants of subjective wellbeing using data from the 2008 New Zealand General Social Survey. The paper first provides a brief summary of what is known about the determinants of subjective wellbeing from the international literature. A simple model of the determinants of subjective wellbeing in New Zealand is described, and coefficients for the model are estimated using ordinary least squares. The model is re-estimated using an ordered Probit to confirm that the results are not biased due to the ordinal nature of the data. The paper finds that demographic factors are largely not significant drivers of wellbeing in New Zealand and conforms to the international literature in identifying income, unemployment, health status, and social contact as the four main factors affecting subjective wellbeing.