Sujarwoto, (2012). "Does decentralisation make citizens happy? Multilevel analysis of self-rated happiness in Indonesia" Paper presented at the 9th annual conference of the HDCA, 5-7 September 2012, Jakarta, Indonesia.

While the economic implication of decentralisation has been widely examined, the ef- fect of decentralisation on citizens' happiness is still overlooked. This paper examines the association between decentralisation reform and citizens' happiness in Indonesia. Data come from the Indonesian Family Life Survey (IFLS) 2007 which consist of 29, 024 individuals living in 262 local governments. Multilevel analyses are used to examine the eect of decentralisation on citizens' happiness. The main ndings show that scal decentralisation is signicant for citizens' happiness, while political decentralisation is not. These results are robust to wide range of individual and local government vari- ables related to happiness. The ndings suggest that decentralisation increases citizens' happiness through better capacity of local governments to deliver public services than through better opportunities for citizens' direct political participation.