Indonesian Farmers' Subjective Well-being: Determinants and Effect on Discounting Behaviour

The challenges prevalent in agriculture substantially impact the well-being of farmers compared to that of many other occupations. The national average rating of well-being may not provide a true representation of farmers. This article empirically examines the determinants and the effect of subjective well-being (SWB) on discounting the behaviour of farmers by estimating data from the 2014/2015 Indonesian family life survey. The results show that 72% are among the poorest three on a six-step hypothetical economic ladder. Few farmers (38%) are very satisfied with life as a whole. Having a higher level of education and income increases the chance of a higher SWB. Also, SWB decreases with an increasing level of poor health, feeling unsafe, job dissatisfaction and being older. The results examining the effect of SWB on discounting behaviour suggest that unlike the affective component (positive affect) of SWB, the cognitive component (life satisfaction) does not have a statistically significant effect on discounting behaviour.