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Work Intensity and Individual Well-Being WORK INTENSITY AND INDIVIDUAL WELL-BEING: EVIDENCE FROM THAILAND by Anant Pichetpongsa submitted to the Faculty of the College of Arts and Sciences of American University in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Economics %lA fi'iyC ~ Chair: Professor Maria S. Floro Professor John Wiljou^hby Professor Thomas Hj Dean, College of Arts and Sciences 3 / > W . Date 2004 American University Washington, D.C. 20016 AMERICAN UNIVERSITY LIBRARY Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number: 3122640 Copyright 2004 by Pichetpongsa, Anant All rights reserved. INFORMATION TO USERS The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleed-through, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. ® UMI UMI Microform 3122640 Copyright 2004 by ProQuest Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. ProQuest Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor, Ml 48106-1346 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. © COPYRIGHT By Anant Pichetpongsa 2004 ALL RIGHTS RESERVED Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. This work is dedicated to my wonderful parents, Surasak Pichetpongsa and Sohhua Pichetpongsa Who set me on my path. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. WORK INTENSITY AND INDIVIDUAL WELL-BEING: EVIDENCE FROM THAILAND BY Anant Pichetpongsa ABSTRACT This research examines the measurement of individual well-being based not only on money income, but also those aspects of individual capabilities and functioning that are not acquired through the market nor solely the result of market participation. This research focuses especially on the incidence of work intensity aspect (based on time use information), which is believed to convey an important qualitative dimension of individual well-being that the conventional measures do not. Specifically, individual well-being is determined by three main components -personal income, educational attainment, and work intensity. An individual-level survey of urban poor home-based workers in Bangkok, Thailand collected in 2002 is used to develop the well-being index. The survey shows that there are significant differences in well-being between men and women workers. Women respondents are worse off in all respects of quality of life -money, education, and time. The empirical tests of the well-being component index and subjective well­ being show that the inverse work intensity index is a good predictor of individuals’ Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. subjective well-being. It also solves the puzzle that income alone cannot significantly explain individuals’ perspective of their well-being. Income only brought happiness to individuals if they did not have to work incredibly long hours to earn it. The empirical study of subjective well-being and well-being index components also suggests that economic policies and development strategies that tend to increase low-wage jobs, e.g., low-wage export oriented development, will not raise the well-being of individuals, specifically poor workers Finally, the empirical results indicate that the traditional methods of measuring well-being that do not take into account time use information tend to omit crucial well-being information, and are likely to give an incomplete picture. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGEMENTS This research would not have been completed without the essential efforts of a multitude of people. First and foremost, I wish to thank Dr. Maria Floro who offered hours of advice and constructive criticism. This project bears the mark of her expertise in countless ways. She has been a selfless mentor, and much appreciated source of information and encouragement throughout my graduate experience. I also wish to thank Dr. Thomas Hertz who not only provided excellent training in econometrics, but also tremendous guidance and support. In particular, Dr. John Willoughby has patiently reviewed the draft and shared his invaluable critique and advice on this project. The field research was performed with the assistance of Ms. Rakawin Leechanavanichphan, Ms. Daonoi Srikajon, Ms. Jirapom Changtong, Mr. Wason Reesomwong, Ms. Aphichaya Nguanbanchong, and Dr. Yada Praparpun. Ms. Leechanavanichphan and Ms. Srikajon from HomeNet provided necessary information and granted an access to local communities. This survey work would not have been possible without the cooperation of HomeNet. Ms. Changtong and Mr. Reesomwong accompanied me on rigorous, physically demanding home visits. Their patience with the interview process was, in a word, admirable, and they never complained about the work schedule or challenge of extensive, daily travel. Ms. Nguanbanchong was an excellent colleague. She helped with survey design and translation. Together, we shared our Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. V frustration and delight during the fieldwork. Dr. Praparpun offered her valuable experienced on field study and encouraged my research. I would like to thank Ms. Marjorie Miles for her outstanding editorial skills. Her effort to polish and perfect my work was very much appreciated. I am also particularly blessed by the friendship and encouragement of Ms. Piyapom Piampratom. She listened to my thoughts, endured my complaints, and always provided me with unconditional support throughout this project. Finally, I am indebted to my parents, Surasak and Sohhua, who inspired me to believe that success can be achieved, either the hard or easy way, when enough energy and determination has been dedicated to it. They offered reassurance when I lost faith during this research study, and convinced me that the world was, in fact, not falling apart. They also gently asked of my progress and gave continual affirmation, even when I was undeserving. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS ABSTRACT....................................................................................................... ii ACKNOWLEDGEMENT .............................................................................. iv LIST OF TABLES .......................................................................................... x LIST OF FIGURES.......................................................................................... xii CHAPTER 1. INTRODUCTION .............................................................................. 1 1.1. Quality of Life Measurement ....................................................... 5 1.2. The Informal Sector, Home-Based Workers, and Well-Being. 7 1.3. Potential Contribution ................................................................... 9 1.4. Organization of Dissertation ......................................................... 10 2. REVIEW OF THE LITERATURE........................................................ 12 2.1. The Well-Being Measurement Literature ..................................... 12 2.1.1. Well-Being Measurement ...................................................... 14 2.1.2. Determinant of Well-Being .................................................. 21 2.2. Time Allocation Literature ........................................................... 32 2.2.1. Recall/Estimated Method ........................................................ 35 2.2.2. Time Diary M ethod ................................................................ 36 2.2.3. Direct Observation M ethod .................................................... 39 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. vii 2.3. Concluding Remarks ....................................................................... 39 3. ANALYTICAL FRAMEWORK ........................................................... 41 3.1. Determinant of Well-Being ............................................................. 43 3.2. Analytical Framework of Well-Being ............................................. 48 3.2.1. Components of Well-Being ...................................................... 50 3.2.2. Constraints of Well-Being ........................................................ 58 3.2.3. Well-Being Maximization Process .......................................... 60 4. METHODOLOGY OF CONSTRUCTING AN INDIVIDUAL WELL-BEING INDEX AND COLLECTING TIME USE D A TA .................................. 64 4.1. Construction of an Individual Well-Being Index ........................... 64 4.1.1. The Level of Educational Attainment Component Index 66 4.1.2. The Personal Income Component Index.................................. 67 4.1.3. The Inverse Incidence of Work Intensity Component Index .. 69 4.1.4. The Individual
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