Dimensions of life satisfaction: Immigrant and ethnic minorities

AuthorNonna Kushnirovich,Arie Sherman
DOIhttp://doi.org/10.1111/imig.12329
Published date01 June 2018
Date01 June 2018
Dimensions of life satisfaction: Immigrant
and ethnic minorities
Nonna Kushnirovich* and Arie Sherman*
ABSTRACT
The article investigates the dimensions of life satisfaction of immigrant and ethnic minorities
comparing them with the majority population. It constructs a theoretical framework, taking into
account both pecuniary and non-pecuniary dimensions of welfare. This study is based on the
data of the Social Survey, administered by the Israeli Central Bureau of Statistics. Immigrants
in this study are regarded as a migrant minority and Israeli-born Arab citizens as an ethnic
minority. The results reveal signif‌icant life satisfaction gaps between the groups, which can be
partially explained by the value of work per se and the value of leisure activities. Applying
the Blinder-Oaxaca decomposition technique, the study revealed that the gap in life satisfaction
could be attributed both to the differences in pecuniary and non-pecuniary resources for each
group, and to different returns on resources. Policy targeted on increasing the economic possi-
bilities of minority groups would decrease the life satisfaction gaps.
INTRODUCTION
Explaining the determinants of happiness, subjective well-being and life satisfaction has become
one of the most vigorously studied subjects in economic literature in recent years (e.g. Clark et al.,
2008; Layard, 2005; Weimann et al., 2015). A vast range of studies investigates the differences in
life satisfaction (LS) between ethnic and immigrant minorities and the majority population, trying
to explain the reasons for these differences (e.g. Amit, 2010; Bartram, 2011; Easterlin & Plagnol,
2008; Simpson, 2012). In that sense, the role played by economic and social resources in explain-
ing the LS gap is of great importance. The literature sets two contradicting approaches to the rela-
tionship between economic/social resources and LS. According to the f‌irst one, resources in general
and income in particular affect LS in the same way for minority and majority groups; therefore, the
LS gap may be explained merely by the lower resources possessed by the minority groups. The
alternative approach takes cultural diversity into account, meaning that economic/social resources
affect LS in different cultures in a different way (Bartram, 2011; Diener & Diener, 1995; Olgiati
et al., 2013; de Vroome & Hooghe, 2014). According to this approach, the gaps in LS can be
explained not by lower levels of resources but by different returns on resources.
According to Easterlin (2003), both pecuniary and non-pecuniary domains affect well-being.
The most important factor is pecuniary, ones material living level. Next, and about equal in
importance, are non-pecuniary factors ...(p.24). We follow the notion that pecuniary welfare
contains the satisfaction derived solely by consuming market goods. In that sense, it represents
one as a passive consumer who derives utility from market purchases. The second dimension repre-
sents one as an active producer who derives satisfaction from activities that take place in two
* Ruppin Academic Centre, Emek Hefer
doi: 10.1111/imig.12329
©2017 The Authors
International Migration ©2017 IOM
International Migration Vol. 56 (3) 2018
ISSN 0020-7985Published by John Wiley & Sons Ltd.

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