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Happiness in transition countries [2 articles]

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  • Guriev, Sergei
  • Zhuravskaya, Ekaterina
  • Frijters, Paul
  • Liuy, Amy Y.C.
  • Mengz, Xin

Abstract

In this paper we study the effect of optimistic income expectations on life satisfaction amongst the Chinese population. Using a large scale household survey conducted in 2002 we find that the level of optimism about the future is particularly strong in the countryside and amongst rural-to-urban migrants. The importance of these expectations for life satisfaction is particularly pronounced in the urban areas, though also highly significant for the rural area. If expectations were to reverse from positive to negative, we calculate that this would have doubled the proportion of unhappy people and reduced proportion of very happy people by 48%. We perform several robustness checks to see if the results are driven by variations in precautionary savings or reverse causality.

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Bibliographic Info

Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 0902.

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Length: 80 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:cpm:docweb:0902

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  1. Song, Lina & Appleton, Simon, 2008. "Life Satisfaction in Urban China: Components and Determinants," IZA Discussion Papers 3443, Institute for the Study of Labor (IZA).
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Cited by:
  1. Pamela Abbott & Claire Wallace, 2014. "Rising Economic Prosperity and Social Quality the Case of New Member States of the European Union," Social Indicators Research, Springer, vol. 115(1), pages 419-439, January.
  2. Mohanty, Madhu S. & Ullah, Aman, 2012. "Direct and indirect effects of happiness on wage: A simultaneous equations approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 143-152.

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