The Influence of Multidimensional Poverty Towards Life Satisfaction

Abstract

Multidimensional poverty encompasses various deprivations that extend beyond income and influence overall well-being among low-income households. This study, anchored in Amartya Sen's Capability Approach, explores the impact of multiple poverty dimensions, namely health, education, living standards, income, religiosity, and digital inclusion, on life satisfaction. This study used a structured questionnaire to collect data from 400 individuals in low-income households in Terengganu. The analysis employed Partial Least Squares–Structural Equation Modelling (PLS-SEM) using SmartPLS 4.0. The analysis demonstrates a significant association between life satisfaction and health, education, living standards, religiosity, and digital inclusion. In contrast, income does not exhibit a significant relationship with life satisfaction, indicating that non-monetary capabilities may play a more influential role in determining overall well-being. The study offers empirical insights for policymakers, particularly in designing multidimensional poverty interventions that strengthen household capabilities and enhance life satisfaction.