DETERMINAN INDEKS KEBAHAGIAAN DI INDONESIA

Welfare indicators in a country such as the size of GDP, the level of inflation, and the decline in the poverty rate are deemed not able to represent the size of the people's welfare which is considered to be only one dimension. The preparation of welfare indicators does not only represent the state of material prosperity but also leads to a state of subjective well-being or happiness. Therefore, this study tries to find out the factors that affect happiness in 34 provinces of Indonesia in 2014 and 2017. The analysis method used was a panel data regression model. The results indicate that the variables of education, health, Gini index, and zakat have a significant effect on happiness in Indonesia. While the variables of GRDP per capita, poverty, Democracy Index have no effect on happiness in Indonesia. This result also illustrates the Easterlin Paradox phenomenon does not occur in Indonesia