LIST OF DEFINITIONS
CHAPTER 2: LITERATURE REVIEW
2.4 Wellbeing
2.4.3 Subjective Well-Being Theory (SWB)
Subjective wellbeing has been considered throughout history as one of the most important factors for humanity (Phelps, 2009). In recent years, there have been a number of endeavors to develop SWB proposals in connection with Happiness Economics. A lot of considerations on SWB measures have been taken into account to further the importance of SWB in the field of innovation. However, a number of studies suggest that exploring the link between SWB and innovation is required so as to identify whether innovation causes SWB or the other way around.
Thus, it is suggested that relevant factors have to be explored so as to gain a balanced perspective between SWB and innovation. Phelps (2009) pointed out that capitalism is not solely focused on its power to create wealth but to create engaging and rewarding work which is a result of innovation. This further emphasizes that innovation equates self-actualization and self- discovery.
Wright and Cropanzano (2000) developed field studies which showcased the positive correlation between job performance and levels of psychological well-being. The results of the field studies indicated that well-being contributed more strongly to positive performance than job satisfaction.
Donald et.al. (2005) conducted a study of 16,000 employees and linked employee productivity to psychological well-being. Their research reports illustrated the potential relationships between employee engagement and well-being.
A more robust measurement of happiness and well-being and its correlation with co-production needs to be developed to make it possible for societies to identify strengths and weaknesses.
The aim is also to go beyond old or traditional single-item measures, which showcase only a small part or fraction of the full dimensions of happiness and well-being.
The European Social Survey (ESS) is a biannual survey of European countries, and its Round 3 and Round 6 consisted of a supplementary well-being module. The module included many major aspects of well-being such as social, psychological, community, etc.
As defined by Diener et al. (1999), Subjective Well-Being is an individual's cognitive and emotional self-evaluation. Subjective well-being is a multidimensional concept that involves an individual's self-assessment of both the various life-domains that are important to him and his life as a whole (Fabian, 2022). The United Nations World Happiness Survey (2015) debated that income is a predictor for happiness. However, this measure of well- being has been criticized in recent years by other researchers. They claim that focusing on income as a predictor of happiness is a narrow picture of human welfare and societal progress.
It was discussed by Diener et al. (1999), two schools of thoughts dominate measures of subject well-being: subjective well-being research and the capability approach. Measures of subject well-being are conducted by asking individuals directly for their own assessment of their situation which makes it more attractive. The capability approach, on the other hand, provides a broader informational space to evaluate a person’s situation as it focuses not only on outcomes but also on action and a person’s substantive opportunities.
Many types of research show that there are many factors that influence subjective well-being (SWB). One of which is individual determinants such as self-esteem is optimism and the like.
Socio-demographic factors such as age, gender, education, and marital status also affect one’s SWB (Keyes, Shmotkin & Ryff, 2002). Economic, situational, and institutional factors are also considered. The effects of all these domains vary.
It is important to point out, however, that although SWB measures should not be used in place of income-based measures of economic performance, SWB measures have a greater influence on the evolution of societies. As viewed, the economic policy increases economic performance, but it also increases social isolation and decreases social capital. Thus, it is suggested that SWB measures could more comprehensively capture both positive income and social capital effect which makes it more possible in an SWB framework. More academic research on the matter is however suggested.
SWB is as well linked to technological innovation and societal innovation which serves as bases for policymaking. The World Happiness Report (2015) revealed that societal innovation is more highlighted as significant into policymaking.
In addition, O’Donnel and O’Brien (2000) suggest a number of key policy implications for some major policy areas. Apparently, the misery caused by long term unemployment is well-known, thus governments should endeavor to allot more resources to overcoming obstacles to returning people to work. Public spending on health should be shifted from health care to health prevention. Transport and education should be taken into consideration as well from an SWB approach to policy.
The field of Psychology states that “subjective well-being” is a multidimensional concept: a combination of a cognitive judgment of satisfaction with life, one’s own experience as he is exposed to the frequent circumstances of both positive moods and emotions, so with the pessimistic ones. It involves an evaluation of one’s life as a whole and the assessment of specific life domains characterized by the pleasantness of one’s experience. Individual assessment of one's own happiness (SWB) and satisfaction is affected by internal and external
factors. That being said, SWB is indeed a general area of scientific interest as opposed to being regarded as a single specific interest construct.
For example, Aristippus (435 - 356 BC), a former student of Socrates, suggested that the goal of life was to experience maximum pleasure. On the other hand, the Greek philosopher Aristotle (384–322 BC), who was a student of Plato and teacher of Alexander the Great, argued that true happiness was not to be found in pleasure or the pursuit thereof per see, but rather, was to be found in the realization of human potential. Consequently, for some, this has given rise to two great approaches to the concept of subjective well-being, that is, the Hedonic and the Eudemonic systems of interpretation (Keyes, Shmotkin & Ryff, 2002).
In recent studies, certain aspects of happiness and life satisfaction measures have been found as reliable and related to more objective measures of well-being, such as those relating to brain activity, personality, blood pressure, positive emotions and the frequency of smiles for example.
Consequently, some organizations who are interested in cross-national research, such as the World Value Survey and the European Quality of Life Survey for example, use both single item measures of life satisfaction; and that of happiness in order to assess the Subjective Well-Being.
A single item measure for life satisfaction is reliable and has been widely used to assess the Subjective Well-Being of people across a number of nations. In conclusion, governments worldwide looking for subjective well-being as strongest correlates as a starting point to informing policies that support subjective well-being.