Abstract

Previous studies revealed that consuming activities and spending money to meet needs can improve individuals’ happiness. Our study showed that spending money, not for personal needs also has a big impact on individuals’ well-being. We used 26,464 observations of 4th and 5th waves of the Indonesian Family Life Survey (IFLS) to predict the expenditures for non-personal needs (known as prosocial expenditure) on one's subjective well-being. The estimation result of the probit model showed that pro-social expenditure had a positive correlation with subjective well-being. On average, those who spend more on charity are happier than people who spend less. We also found that prosocial expenditure among Muslim and non-Muslim observations had different effects on happiness and life satisfaction.

Highlights

  • IntroductionHappiness is not always derived by receiving or consuming

  • In a physiological concept, happiness is not always derived by receiving or consuming

  • There are a number of research showing a positive correlation between giving others on the happiness of the giver (Aknin et al, 2012; Choi & Kim, 2011; Dunn et al, 2008; Lai et al, 2020; Miles et al, 2021; Chen et al, 2020; Gherghel et al, 2019)

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Summary

Introduction

Happiness is not always derived by receiving or consuming. There are a number of research showing a positive correlation between giving others (in this context we call it as prosocial expenditure) on the happiness of the giver (Aknin et al, 2012; Choi & Kim, 2011; Dunn et al, 2008; Lai et al, 2020; Miles et al, 2021; Chen et al, 2020; Gherghel et al, 2019). The study from Dave Webb & Janine Wong (2014) showed that prosocial spending (donation behavior) did not influence the happiness of the giver (Webb & Wong, 2014). On top of that, Eisenberg and Miller (1987) stood moderately, their finding was unspecified and may be positive, negative, or both (Eisenberg & Miller, 1987)

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