This paper explores various dynamics in the relationship between life
satisfaction and education in South Africa using the 2008 National Income
Dynamics Survey. The results indicate a strong positive association between
educational attainment and individual satisfaction with life, which
is true in the overall sample and for men and women. This positive relationship
also holds for Black and Coloured individuals, but is insignificant
in the Asian and White samples. Evidence indicates that education is a
positional good, in that people who have attained more than the mean
level of education in their relevant cluster are significantly more satisfied
with life compared to those possessing less than the mean education.