Empowerment and life satisfaction: Evidence from Bangladesh

In this paper, we examine the relationship between life satisfaction and empowerment in rural Bangladesh. We analyse this relationship across region, religion, gender and income categories using data from the BIHS 2012. This dataset has detailed socio-economic information on co-resident couples and also provides information on the empowerment of individuals within the household. We correct for endogeneity both by including a range of community and household fixed effects to capture the impact of omitted variables as well as by estimating an instrumental variable model in which the average participation rate in community activities is our identifying variable. Our results are robust and indicate a positive relationship between empowerment and life satisfaction. Analysing the sub-components of the empowerment index, we find…