Determinants of Subjective Economic Well-being and Subjective Health: Bivariate Ordered Probit Approach

Abstract

The purpose of this study is to examine the determinants of subjective well-being and subjective health of households in Turkey by considering the interaction between these two variables. Micro data set of Survey of Income and Living Conditions (SILC) held by TurkStat for the period of 2017 is used in this study. The answers of the questions on “the ability to make ends meet with total household income” and “the general health status of household head” are defined as “subjective economic well-being” and “subjective health” variables, respectively, which denote the dependent variables of the study. Because of the ordered structure of dependent variables, bivariate ordered probit model is used to determine the effects of independent variables on household head’s well-being status and health status in order to focus the relationship between these two dependent variables. According to the findings obtained from the study, the higher the education level of the household head, the better the subjective health perception of the household head. In addition, the status of the household head as unemployed or divorced negatively affects the subjective economic well-being of the household head. Household income is the most important variable affecting both the subjective economic well-being and subjective health of the household head. As a result, although the determinants of subjective economic well-being and subjective health of the household head differ, there exists a relationship between these two subjective variables.