Economica: Jurnal Ekonomi Islam
Vol. 15 No. 1 (2024)

The Relationship Between Donations and Individual Happiness: An Analysis of Prosocial Spending Effects Among Muslims in Indonesia

Khoiriyah, Nur Faizah (Unknown)
Paksi, Girindra Mega (Unknown)



Article Info

Publish Date
30 Jun 2024

Abstract

Indonesia is renowned for its cultural diversity, with the tradition of gotong royong—symbolizing solidarity and mutual assistance—deeply embedded in its society. This tradition is mirrored in the country's high level of philanthropic activity, making Indonesia the most generous nation globally. This study investigates the relationship between charitable donations and the happiness of Indonesia’s Muslim population, using data from the 2014 Indonesian Family Life Survey (IFLS) wave 5, which represents about 83% of individuals living in 13 out of 33 provinces. The focus on the Muslim population reflects their substantial contribution to Indonesia’s global ranking in generosity. Four control variables—health, education, consumption (food and non-food), and social participation—are included in the analysis, which is conducted using binary logistic regression. The findings indicate that donations have a significant positive impact on the happiness of Muslims in Indonesia. Moreover, three control variables—health, education, and food consumption—also show positive and significant effects, while social participation, despite its theoretical relevance, does not exhibit a significant impact. Although non-food consumption is statistically significant, it presents an odds ratio of 1, suggesting no meaningful influence on happiness.

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Journal Info

Abbrev

economica

Publisher

Subject

Economics, Econometrics & Finance Social Sciences Other

Description

EEconomica: Jurnal Ekonomi Islam is a scientific journal in the field of Islamic economics studies published twice a year by the Institute of Islamic Economic Research and Development (LP2EI), Faculty of Islamic Economics and Business UIN Walisongo Semarang. The editors receive scientific ...