Abstract

This study takes three waves of the World Value Survey data carried out in 1995, 2005, and 2014 to investigate the constituent of life satisfaction. Although literature studies shown that income claims large part of life satisfaction, we further examine the data from individual household and use ordered probit model and decision tree classification method to investigate the difference between OECD (high-income) and non OECD (low-income) countries. In general, the regression evidence appears a positive relationship between life satisfaction and income level, health state, education , and perceived good governance ,but marriage appears a negative relationship. In addition to the variables above, the individual trust level is also taken into the model. Both of the ordered probit model and decision tree classification method with individual trust level does not improve its explanation power. This may be because individual families with higher levels of incomes had more involvement in communal groups and tend to have higher trust level. The interesting finding of this study is that in the OECD countries, life satisfaction is positively affected by income level, health state, education , perceived good governance , and negatively influenced by marriage; while in the non OECD countries, life satisfaction is positively affected by income level, health state, education , perceived good governance, and negatively influenced by marriage.

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