Determinants of Multidimensional Well-Being: Evidence from Pakistan

Abstract

This study investigates the determinants of multidimensional well-being in Pakistan, aiming to provide a comprehensive understanding of the factors influencing multi-facet happiness. Drawing on a rich literature review, the research identifies key influencing factors of well-being, including economic, social, cultural, and psychological factors for analysis. Utilizing data from the World Value Survey and employing Principal Component Analysis (PCA) and ordered probit regression, the study finds that health status is the strongest predictor of well-being, followed by security, social values, and trust. These results align with existing theories that emphasize the importance of social connections and personal security in enhancing life satisfaction. Interestingly, perceptions of income factors also appear to significantly affect well-being, underscoring the need for policies that promote economic equity The analysis reveals varying results in the impact of factors such as ethical values and innovation on well-being dimension, suggesting areas for further exploration. The study highlights the urgent need for culturally relevant frameworks to measure well-being, calling for policymakers to consider not just economic indicators but also social and emotional dimensions. Based on these findings, the research offers several policy recommendations, including enhancing healthcare access, strengthening social security programs, fostering trust and social capital, and promoting inclusive economic policies. By implementing these strategies, policymakers can create a supportive environment that enhances well-being and aligns with the United Nations Sustainable Development Goals (SDGs) in Pakistan.