Shifting from survival to decent living: Evaluating individuals' capabilities to live the life they value in relation to their income

Botha, Mineschke

Shifting from survival to decent living: Evaluating individuals' capabilities to live the life they value in relation to their income

Master Thesis

2021

Abstract

Personal income derived from work is an important, although not the only, contributor to wellbeing. According to Sen's capability approach, an individual's capability to achieve valued quality of life (QoL) domains is what determines their wellbeing. However, employment should be remunerated well enough to provide individuals with the capabilities to realise the aspects of their lives which they value, and in that way to achieve a good QoL. This dissertation takes the premise that it is vital to base the degree to which individuals can realise what constitutes a good life for them on their subjective views, instead of economic indicators which do not account for the multidimensionality of wellbeing and differences in the perceptions of important and attainable life domains. Therefore, the aims of the current study were to (1) determine the perceived value of different QoL domains as related to income, (2) determine the perceived attainment of different QoL domains as related to income, (3) determine the nature of the relationship between income and QoL calculated as a capability score, and (4) determine at what income level individuals were able to acquire the capabilities they perceived as relevant to have a good QoL. To achieve the research aims, a quantitative, secondary dataset was analysed. The dataset (N = 953) included survey data collected in the second half of 2019 from individuals residing in different wards within the Cape Town Metropole. After data capturing and cleaning, a sample size of N = 953 was present. To analyse the data, descriptive statistics, Spearman rho correlation analyses, and Fishers r to z transformation were run. The results found that firstly, Housing, Employment, and Information and Knowledge were found as the most important with increasing income. In addition, the QoL domains of Quality of Working Life; Information and Knowledge; Psychological/Mental Health and Emotional Wellbeing; Savings, Wealth and Assets; Employment; Leisure and Spare Time Activities; Quality of Neighbourhood; Social Relationships; and Housing were found as more attainable with increasing income. Finally, as income increased, individuals' QoL also increased, with a monthly net pay of R 10,000 as the income level from which individuals, on average, could attain a good QoL. These results provide important implications for research and practice as the specific QoL domains relevant to South Africa have been identified, with the income level at which individuals perceived themselves as having the capability to attain valued QoL domains being highlighted. Thus, providing important guidelines for developing policy to implement a relevant living wage and, ultimately, contribute to national and international agendas in promoting decent work and decreasing poverty.

Keywords

Industrial and Organisational Psychology

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