Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country

Understanding individual and contextual factors of happiness and life satisfaction in a low- and middle-income country setting are important in the study of subjective well-being. This study aims to examine individual and contextual factors of happiness and life satisfaction in one of the happiest countries in the world: Indonesia. Data comes from the Indonesian Family Life Survey 2014 (N _individual = 31,403; N _household = 15,160; N _district = 297). Results from a three-level ordered logit model show that factors of happiness and life satisfaction are beyond individual factors. Happiness and life satisfaction are also strongly associated with factors within an individual’s household and at the district government level. Individuals living in households with better economic welfare are happier and more satisfy. Poor health and unemployment have a detrimental effect on happiness and life satisfaction. Individuals living in districts whose governments’ better deliver public services are happier and more satisfy. In contrast, those living in areas with conflict and violence is less happy and satisfy. Individual religiosity and community social capital in the form of indigenous tradition benefit individual happiness and life satisfaction.