Abstract
This paper uses a household surveyfrom South Africa to estimate a model ofsubjective well-being based upon poverty andhousehold characteristics including housing,sanitation, and transportation. Following Sen,we allow for factors in addition to income andwe begin to incorporate functionings andcapabilities as determinants of well-being. This study finds that important differencesexist among groups based upon their economicstatus. For the poorest quartilestransportation and housing play the mostimportant role in determining well-being, whilefor the richest quartiles, sanitation, water,energy, education and health are relativelymore important. These results have importantpublic policy implications because many of thefactors affecting well-being have large publicgood components. In addition, these resultscould be used to help governments focus aid inorder to improve well-being.
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