From participation to well-being: The welfare effects of cooperative membership among food farmers in Indonesia

Authors : Syauqi Agung Firmanda, Fatahullah Fatahullah, Mohammad Wahyu Firdaus

Pages : 321-334

Doi:10.24181/tarekoder.1732175

View : 137 | Download : 258

Publication Date : 2025-12-19

Article Type : Research Paper

Abstract :Purpose: This study examines the causal impact of cooperative membership on the subjective well-being of food crop farmers in Indonesia, measured through self-reported indicators of Happiness and Life Satisfaction. Design/Methodology/Approach: Utilizing panel data from the Indonesian Family Life Survey 5 (IFLS-5), the study covers 13 provinces and includes 3,475 food-farming households, comprising 792 cooperative members and 2,683 non-members. A probit regression model is employed to identify socioeconomic determinants of cooperative participation, followed by Propensity Score Matching (PSM) and Inverse Probability Weighted Regression Adjustment (IPWRA) to estimate the treatment effects on well-being outcomes. Findings: The probit results reveal that mobile phone usage, gender, experience of crop failure, and residential location significantly affect the likelihood of joining a cooperative. Both PSM and IPWRA estimates indicate that cooperative membership leads to a statistically significant increase in Happiness (by 42–45%) and Life Satisfaction (by 25–29%). These findings highlight that cooperatives contribute not only to economic stability but also to psychosocial dimensions of farmer well-being, including income predictability, future orientation, and social inclusion. Social Implications: The study recommends repositioning cooperatives as inclusive institutions that not only provide economic services but also foster training, digital access, gender-sensitive participation, psychosocial support, and risk-sharing, thereby enhancing farmers’ happiness, life satisfaction, and overall welfare. Originality/Value: This study uniquely integrates subjective well-being indicators to assess cooperative impacts, offering national-scale evidence for psychosocial and economic welfare improvements.
Keywords : Mutluluk, yaşam doyumu, psikososyal boyutlar, öznel iyi oluş

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