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Openness, rural-urban inequality, and happiness in China

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  • Ma, Yong
  • Chen, Diandian

Abstract

Although the relationship between income inequality and subjective well-being has been extensively discussed in the literature, relatively little is known about the effects of openness on subjective well-being and how rural-urban inequality may influence these effects. This article attempts to address this issue by using the dataset of the China General Social Survey (CGSS). We find that the effect of trade openness on happiness takes an inverted U shape, whereas that of financial openness is U-shaped. We also find that rural-urban inequality has a dampening effect on happiness, and this effect is strengthened by trade openness but weakened by financial openness. These findings extend previous studies on the determinants of happiness by highlighting the different effects associated with trade openness and financial openness and how these effects may interact with rural-urban inequality.

Suggested Citation

  • Ma, Yong & Chen, Diandian, 2020. "Openness, rural-urban inequality, and happiness in China," Economic Systems, Elsevier, vol. 44(4).
    • Handle: RePEc:eee:ecosys:v:44:y:2020:i:4:s0939362520301527
    DOI: 10.1016/j.ecosys.2020.100834
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    More about this item

    Keywords

    Financial openness; Happiness; Rural-urban inequality; Trade openness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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