Is There An Income-Happiness Puzzle in China? A National Survey, 2003-2021

Jinyang Yang

No 1303, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This study investigates the income-happiness puzzle in China by examining the trends in happiness and economic growth over the past two decades. It is the first long-term study in China to utilize a consistent national representative survey in the new century. Using data from the Chinese General Social Survey (CGSS) waves 2003-2021, the study reveals a substantial increase in average happiness alongside steady income growth. Income growth contributes to approximately 40% of rural residents' happiness improvement and 25% of that of urban residents during this period. I find the effect of income is positive and robust when examined using both regional aggregate data and individual data. Furthermore, the study finds that the effect of relative income, measured by local average income, does not have a significant impact on individual happiness. The research also highlights the persistent urban-rural happiness gap and explores the distinct happiness-age curves observed between urban and rural residents.

Keywords: Subjective Well-Being; Economic Growth; Easterlin Paradox; Happiness-Age Curve (search for similar items in EconPapers)
JEL-codes: H0 I30 J10 O10 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-cna and nep-hap
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1303

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