The Subjective Well-Being status has gained a growing
research attention in social sciences during the last decades. The attention
given by the academic world to this issue has been followed by the community in
general. This line of research is still undeveloped in Portugal, and therefore needs
further investigation. The purpose of this study is to analyze the determinants
of Life Satisfaction and Happiness as proxies for Subjective Well-Being of the
Portuguese citizens using micro-data from the European Quality of Life Survey. OLS
regressions and Ordinal Logistic models are estimated to identify the main
factors that explain well-being in Portugal. We find that trust in public
institutions, satisfaction with material conditions, volunteering activities
and employment status have a positive and significant effect on Life Satisfaction.
Our evidence also shows that satisfaction with family, satisfaction with
material conditions, participation in sport activities, optimism and the
marital status are relevant factors in explaining citizen’s Happiness in
Portugal. The results are similar using OLS or Maximum Likelihood estimation
techniques on ordinal logistic models.
JEL Classification: C1,
C25, M14, I31.
Keywords: Happiness, Life Satisfaction, Subjective Well-Being, Ordinal
Logit Models, Factor Analysis.