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A microeconometric analysis of housing and life satisfaction among the Vietnamese elderly

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Abstract

This study examines the relationship between housing and subjective well-being among the Vietnamese elderly, using data from the 2011 Vietnam Ageing Survey. Our regression analysis reveals that permanent housing and better amenities are major factors contributing to housing satisfaction and life satisfaction. Notably, we find that housing satisfaction has a strongly positive impact on life satisfaction and the impact is stronger after controlling for endogeneity problems. Thus, the finding confirms that housing is an important life domain and as a result, housing satisfaction is a strong predictor of life-satisfaction judgments. The findings might suggest that people made a rational choice when they invested a large amount of resources in their houses with notable well-being gains. Also, another implication here is that policies and programs to assist poor families in moving out of temporary accommodation or improving housing amenities are likely to be beneficial in improving well-being for the poor elderly.

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Notes

  1. According to United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), population starts aging when the share of older-age persons to the total population accounts for more than 10% (UNFPA 2011).

  2. The omitted category is temporary houses.

  3. Angrist and Pischke (2008, p. 213) note that: “Check overidentified 2SLS estimates with LIML. LIML is less precise than 2SLS but also less biased. If the results come out similar, be happy. If not, worry, and try to find stronger instruments or reduce the degree of overidentification”.

  4. p values in 2SLS and LIML estimates are 0.50 and 0.46, respectively.

  5. Endogeneity test in Table 5 confirms that housing satisfaction is endogenous and thus the IV estimator should be preferred.

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  1. University of Economics and Business, Vietnam National University, Hanoi, Room 100, Building E4, 144 Xuan Thuy Road, Cau Giay District, Hanoi, Vietnam

    Tuyen Quang Tran

  2. Department of Economics, Academy of Finance, Hanoi, Vietnam

    Huong Van Vu

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  1. Tuyen Quang Tran
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Tran, T.Q., Van Vu, H. A microeconometric analysis of housing and life satisfaction among the Vietnamese elderly. Qual Quant 52, 849–867 (2018). https://doi.org/10.1007/s11135-017-0492-9

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