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The study aimed to uncover the unobserved heterogeneity of the population in Mwanza and Kagera regions. The study examined if living in Mwanza region is more economically better and happier than living in Kagera region. The cross-sectional survey research used with the cross-sectional data from 211 individuals sampled randomly from 4 districts, Nyamagana and Misungwi from Mwanza region, and Bukoba and Muleba from Kagera region. The FIMIX-PLS used to analyse the data. The study found that the population of Mwanza and Kagera regions can be grouped into two mains classes which are class one with a lower annualised income below 1.5 TZS millions per capita and a lower mean score of fundamental psychological factors for happiness (FPFH) in comparing to the class two. The class two is characterised with a higher annualised income about 2.45 TZS millions per capita and a higher mean score of FPFH in comparing to class one. The study evidenced that respondents of Mwanza region have a higher annualised income and FPFH scores than respondents of Kagera region in each class. Therefore, the study concluded that living in Mwanza region is more economically better and happier than living in Kagera region. The study recommended the immigration to seek the economic opportunity and happiness, for example immigration from Kagera region to Mwanza region or nation to nation is encouraged. Moreover, further study recommended by using a panel data to attest the posed facts because this study limited to the cross-sectional data.
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