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Life satisfaction in China and consumption and income inequalities

Author

Listed:
  • Xiaoyan Lei

    (Peking University)

  • Yan Shen

    (Peking University)

  • James P. Smith

    (RAND Corporation)

  • Guangsu Zhou

    (Nankai University)

Abstract

This research uses nationally representative data to study how economic resources and inequalities are associated with life satisfaction of Chinese residents. We construct economic resource and inequality measures from expenditure rather than from income, after confirming that expenditure inequality is a better measure in the Chinese context. We find that economic inequalities in general are negatively associated with life satisfaction, and that this association is larger for inequalities in the lower half of the distribution than those in the upper half of the distribution. We further explore the mechanisms under which inequality can be associated with life satisfaction, and find that aspiration is potentially one important channel.

Suggested Citation

  • Xiaoyan Lei & Yan Shen & James P. Smith & Guangsu Zhou, 2018. "Life satisfaction in China and consumption and income inequalities," Review of Economics of the Household, Springer, vol. 16(1), pages 75-95, March.
    • Handle: RePEc:kap:reveho:v:16:y:2018:i:1:d:10.1007_s11150-017-9386-9
    DOI: 10.1007/s11150-017-9386-9
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    3. Nie, Peng & Li, Qiaoge & Sousa-Poza, Alfonso, 2021. "Energy poverty and subjective well-being in China: New evidence from the China Family Panel Studies," Energy Economics, Elsevier, vol. 103(C).
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    5. Qian Li & Xiaoguang Huang & Hanwen Zhang, 2023. "Exploring the Effects of Consumption Expenditures on Life Satisfaction in China," Journal of Happiness Studies, Springer, vol. 24(6), pages 1963-1990, August.
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    7. Zhang, Quanda & Awaworyi Churchill, Sefa, 2020. "Income inequality and subjective wellbeing: Panel data evidence from China," China Economic Review, Elsevier, vol. 60(C).
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    9. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.
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    More about this item

    Keywords

    Economic inequality; Subjective well-being; Economic status; China;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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