Subjective well‐being in rich and poor countries

Abstract

PurposeThe purpose of this paper is to identify and discuss important predictors of subjective well‐being (SWB) that are relevant to explain well‐being as experienced by individuals in developing countries. The paper will use Egypt as example of an economy in transition to free market. Egypt is the largest country in Africa and Middle East and it is an example of an emerging market that struggles to achieve political stability and economic prosperity.Design/methodology/approachThis paper is based on data from international survey programs such as: Freedom in the World. Available at:www.freedomhouse.org; World Database of Happiness. Erasmus University Rotterdam. Available at:www.worlddatabaseofhappiness.eur.nl/statnat; Political Regimes Characteristics and Transitions. Available at:www.cidcm.umd.edu/inscr/polity/.Findings– The factors of absolute income, relative income and economic justice, freedom, human rights, social capital, and population density help to explain national SWB in developing countries and the SWB differences between rich and poor countries.Research limitations/implicationsBased on the literature findings that well‐being enhances work productivity; this paper strongly argues that managers in developing and in transition to free market countries should adopt the value of enhancing well‐being and happiness among their workers. Managers should create the appropriate conditions and work design and should also turn their attention to understand and monitor well‐being indicators. Some limitations of the existing literature is that it is still not completely understood why some factors, such as religion, and their moderators affect well‐being of societies and which factors are universal and which are cultural contextual.Originality/valueThe concept of well‐being has rarely been discussed in the management literature compared to the emerging attention to this concept in economic, psychology and sociology literature. Published research argues that economic measurements of national progress and people well‐being, by means of gross domestic product or per capita income, are not sufficiently comprehensive and that individuals' subjective satisfaction or SWB may be added as a more encompassing framework for the quality of life factors. In addition, limited research has been done on SWB in developing countries.