Consumption Pattern Benefits of the Cultural Activities in South Korea

Abstract

This study examines the relationship between the cultural consumption pattern and an individual’s subjective well-being. We divide the consumption pattern of cultural activities by frequency, diversity, and inclusion and estimate the monetary value of the participation in culture and arts activities through the marginal rate of substitution. To reduce omitted variable bias, various factors are controlled for, such as basic demographics and satisfaction with personal relationship, class awareness, subjective income level, charitable donations and voluntary activities. The results show that the consumption of cultural activities can improve the individual’s subjective well-being, thus suggesting the use of cultural vouchers. Specifically, we find that the coefficients on frequency are positive and statistically significant, indicating that the cultural activities in Korea have a positive relationship with an individuals’ subjective well-being. Our research provides insight to the government organizations involved in the promotion of leisure policies.