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Income inequality, corruption and subjective well-being

Author

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  • Bing Yan
  • Bo Wen

Abstract

Based on the data of CGSS2013, we analyse the relationship between income inequality, corruption and subjective well being using an Ordered Probit model. Our results indicate that income inequality and corruption significantly reduces the subjective well-being of our country’s residents. Furthermore, corruption is an important channel for the negative effect of income inequality on subjective well-being, the impact of income inequality on subjective well-being is mainly achieved by the role of corruption. Specifically, the impacts vary according to hukou. Higher degree of income inequality indeed reduces the subjective well-being of urban residents, while it has a positive effect on subjective well-being of rural residents. Corruption has a significant negative impact on the subjective well-being of urban and rural residents. There is heterogeneity in the influence of different income levels in rural areas. The study in this paper shows that anti-corruption and narrowing the income gap are the two major grippers to improve the well-being of the residents.

Suggested Citation

  • Bing Yan & Bo Wen, 2020. "Income inequality, corruption and subjective well-being," Applied Economics, Taylor & Francis Journals, vol. 52(12), pages 1311-1326, March.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1311-1326
    DOI: 10.1080/00036846.2019.1661953
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    Cited by:

    1. Yi Luo & Dong Huang & Fangfang Cao, 2022. "The Impact of Family Members Serving as Village Cadres on Rural Household Food Waste: Evidence from China," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    2. Sher Khan, 2022. "Investigating the Effect of Income Inequality on Corruption: New Evidence from 23 Emerging Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2100-2126, September.
    3. Justina Shiroka-Pula & Will Bartlett & Besnik A. Krasniqi, 2023. "Can the Government Make Us Happier? Institutional Quality and Subjective Well-Being Across Europe," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(2), pages 677-696, April.
    4. Peihua Deng & Ronnie Schöb, 2022. "Group-Specific Redistribution, Inequality, and Subjective Well-Being in China," CESifo Working Paper Series 9847, CESifo.
    5. Long Yang & Haiyang Lu & Meng Li, 2023. "Multidimensional Inequality and Subjective Well-Being in China: A Generalized Ordered Logit Model Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 1021-1052, February.
    6. Xupeng Zhang & Dianxi Wang & Fei Li, 2022. "Physical Exercise, Social Capital, Hope, and Subjective Well-Being in China: A Parallel Mediation Analysis," IJERPH, MDPI, vol. 20(1), pages 1-13, December.
    7. Afonso, Oscar & Bandeira, Ana Maria & Lima, Pedro G., 2022. "Growth and welfare effects of corruption penalties," Economic Systems, Elsevier, vol. 46(3).
    8. Amanina Abdur Rahman & Spyridon Stavropoulos & Martijn Burger & Elena Ianchovichina, 2021. "Does Institutional Quality Moderate the Relationship between Corruption and Subjective Well-Being?," Economics Bulletin, AccessEcon, vol. 41(3), pages 975-996.

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