Generalised Ordered Model for Conceptualising and Ascertaining the Determinants of Livelihood Satisfaction in Ghana

Various studies of satisfaction rarely focus on livelihood satisfaction. They focus on job satisfaction which does not provide a comprehensive understanding in terms of livelihood studies. Moreover, these studies use the normal ordered logistic model in the study of satisfaction even though the parallel lines assumption associated with this model is often violated. This current study proposes a framework for studying livelihood satisfaction and adopts a generalised ordered logit model to explain the determinants of livelihood satisfaction in Ghana. The sample consisted of 11,490 household’s heads based on current data from the Ghana Living Standard Survey. The study found that self-employees are overall very satisfied with their livelihoods than paid employees contrary to a perception that the latter are more satisfied. It also found that aged and married household’s heads are associated with higher probabilities of being very satisfied with their livelihoods while female-headed household’s heads are less likely to be very satisfied. Characteristics of livelihoods such as the security, type of livelihood strategy, nature of work schedule and compensation are equally significant determinants of livelihood satisfaction. The study concludes that improving satisfaction especially for paid employees requires adequate remuneration and flexible work schedule. It further recommends that livelihood interventions should support self-employed agricultural and non-agricultural livelihood strategies to facilitate development and at the same time the satisfaction of households.