DECOMPOSING THE INCREASE IN REPORTED LEVELS OF SUBJECTIVE WELL-BEING IN SOUTH AFRICA FROM 1993 TO 1998

Reported levels of household life satisfaction, also referred to as subjective well-being, increased dramatically in South Africa following the end of Apartheid. This study uses household surveys from 1993-1994 and 1998 in South Africa to investigate why. Models of subjective well-being are estimated following previous literature and a Oaxaca decomposition is then applied, which allows subjective well-being and the determinants of subjective well-being to be examined in a new framework. The decomposition determines what portion of the life satisfaction increase in South Africa is due to improvements in living conditions and what portion is due to changes in the way certain factors ‘reward’ life satisfaction. The results suggest that fully 92.9 percent of the increase in life satisfaction is due to changes in the reward from the factors considered, not to improvements in living conditions. The results suggest that the determinants of subjective well-being can change substantially over time, and that changes in governmental and social systems can be as or more important than more commonly considered determinants of subjective well-being

Understanding life-satisfaction changes in post-apartheid South Africa

We analyze the large changes in the level and distribution of reported life satisfaction In South Africa from 1993 to 1998, a period spanning the end of apartheid and the creation of a more inclusive democracy. The percentage of black South Africans reporting dissatisfaction with their lives dropped by over two-thirds, despite only modest improvements in material living conditions. Using household surveys five years apart, we show that the vast majority (over 85 percent) of the improved life satisfaction is attributable to changes in the satisfaction derived from specific living conditions, not to changes in the actual level of those living conditions. While some of these shifts are likely attributed to the social churn at the end of apartheid, these changes also indicate changing opportunities for black South Africans. These results are consistent with hedonic adaptation and show that the factors that make people happier can change dramatically over a relatively short time period.Adaptation; Happiness; Oaxaca decomposition; South Africa; Well-Being

Understanding life-satisfaction changes in post-apartheid South Africa

We analyze the large changes in the level and distribution of reported life satisfaction In South Africa from 1993 to 1998, a period spanning the end of apartheid and the creation of a more inclusive democracy. The percentage of black South Africans reporting dissatisfaction with their lives dropped by over two-thirds, despite only modest improvements in material living conditions. Using household surveys five years apart, we show that the vast majority (over 85 percent) of the improved life satisfaction is attributable to changes in the satisfaction derived from specific living conditions, not to changes in the actual level of those living conditions. While some of these shifts are likely attributed to the social churn at the end of apartheid, these changes also indicate changing opportunities for black South Africans. These results are consistent with hedonic adaptation and show that the factors that make people happier can change dramatically over a relatively short time period

Understanding life-satisfaction changes in post-apartheid South Africa

We analyze the large changes in the level and distribution of reported life satisfaction In South Africa from 1993 to 1998, a period spanning the end of apartheid and the creation of a more inclusive democracy. The percentage of black South Africans reporting dissatisfaction with their lives dropped by over two-thirds, despite only modest improvements in material living conditions. Using household surveys five years apart, we show that the vast majority (over 85 percent) of the improved life satisfaction is attributable to changes in the satisfaction derived from specific living conditions, not to changes in the actual level of those living conditions. While some of these shifts are likely attributed to the social churn at the end of apartheid, these changes also indicate changing opportunities for black South Africans. These results are consistent with hedonic adaptation and show that the factors that make people happier can change dramatically over a relatively short time period

Essays on Economic Development and Climate Change

The first essay considers the relative effectiveness of government and non-governmental organizations (NGOs) as channels to allocate resources. I use a catastrophic climate-related shock--Hurricane Mitch--to examine the political economy of these channels of aid distribution at the micro level. I combine extensive data on aid received by Nicaraguan households with data on municipal election outcomes and an exogenous, precipitation-based measure of hurricane impact. I find that the hurricane had long-lasting effects on the aid received by households from both NGOs and the government. In the short term, however, the government did not provide aid according to the objective measure of hurricane damage but instead provided aid along political lines. The second essay presents estimates of a relationship between extreme hot temperatures during gestation and a child's subsequent physical well-being in a sample of children in Peru, thus extending existing evidence constructed from U.S. data. Estimates are constructed using high-resolution gridded climate data and geo-coded household surveys. The results suggest that a period of extreme heat (a month whose average temperature is more than 2 standard deviations above the local average) in the period 1 to 3 months before birth is associated with lower weight at birth and a reduction in height (measured 1 to 59 months after birth) that cannot be fully explained by birth weight. There is no evidence of differential maternal investment, as measured by duration of breastfeeding, according to a child's exposure to extreme heat during gestation. The third essay asks whether improved treatment of HIV/AIDS in Africa can be achieved simply by paying health workers to do more. I present estimates of the impact of financial incentives paid to individual workers at public health facilities in Mozambique. The results suggest that piece-rate incentives increased the delivery of five out of fourteen health services for which treatment effects can be identified, with estimated increases ranging from 34 to 157 percent, depending on the particular service. I find no evidence of a corresponding decrease in the delivery of services that are not financially incentivized, suggesting that there is no "crowding out" of intrinsic motivation

Story of the hurricane: Government, NGOs, and the difference in disaster relief targeting

After catastrophes, international donors offering assistance must decide whether to channel resources via the local government or non-governmental organizations (NGOs). We examine how these channels differ in targeting aid by combining survey data on aid received by Nicaraguan households before and after Hurricane Mitch. In the short term, NGOs provided aid according to hurricane severity, while government aid allocations were not significantly higher in the hardest hit areas. However, government-provided aid matched that of NGOs several years later. Despite the lag in government aid, we do not find evidence of political manipulation of relief aid in either the short or long-term