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Abstract

This paper tests for happiness differences among race groups in South Africa and also investigates the determinants of happiness for each race group. Using data from the 2008 National Income Dynamics Survey, the results indicate that reported happiness differs substantially among race groups, with Blacks being the least happy. The determinants of happiness also differ between race groups. While Whites attached greater importance to physical health, employment status and absolute income matter greatly for Blacks. For Coloureds and Blacks, relative income is an important determinant of happiness, with religious importance significantly contributing to the happiness of Indians/Asians.

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