Abstract
This minor dissertation investigates the determinants of subjective wellbeing in South Africa.
All five waves of the National Income Dynamic Study (NIDS) dataset were used in a panel
setting, and a random effect ordered probit model was employed. The findings revealed several
factors, including income, relative income, social status, employment status, and tertiary
education are important determinants of happiness in South Africa. However, it was also found
that the predictors of happiness for the South African population differed slightly from the
predictors of happiness for the African population sub-sample. One such a glaring difference
was that of geo-type. For the South African population, the relationship was statistically
significant and positive; individuals who resided in urban areas were more likely to enjoy
higher levels of subjective wellbeing than those who resided in farm areas, townships or rural
areas. Conversely, the relationship between subjective wellbeing and geo-type for the African
sub-sample was found to be statistically insignificant. These findings carry crucial and farreaching
implications for policy intervention. They suggest that the policies implemented after
the advent of democracy, meant to include and uplift Africans, may not have had the desired
outcome. Targeted policies that are pro-poor and pro-Black should be prioritised.