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Identity, Inequality, and Happiness: Evidence from Urban China

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  • Shiqing Jiang
  • Ming Lu
  • Hiroshi Sato

Abstract

This paper presents the impact of income inequality on the subjective wellbeing of three different social groups in urban China. We classify urban social groups according to their hukou status: rural migrants, gbornh urban residents, and gacquiredh urban residents who had changed their hukou identity from rural to urban. We focus on how the income disparity between migrants and urban residents affects individual happiness. The main results are as follows. People feel unhappy if inequality is related to their hukou identity, irrespective of whether they are urban residents with or without hukou. However, when identity-related inequality and other individual- and city-level characteristics are controlled, inequality measured by city-level Gini increases happiness. We also find that among urban residents who own hukou, mostly the gacquiredh urban residents are unhappy with hukou-related inequality. This implies that identity is formed by both policy and personal experience. gBornh urban residents have lower happiness scores when they are old. Communist Party members strongly dislike the identity-related inequality.

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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd09-131.

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Date of creation: Mar 2010
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Handle: RePEc:hst:ghsdps:gd09-131

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Keywords: Inequality; Hukou identity; Happiness; Migration; Social integration;

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Cited by:
  1. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute for the Study of Labor (IZA).
  2. Xavier Fontaine & Katsunori Yamada, 2013. "Caste Comparisons: Evidence from India," ISER Discussion Paper 0867, Institute of Social and Economic Research, Osaka University.
  3. Xavier Fontaine & Katsunori Yamada, 2012. "Economic Comparison and Group Identity: Lessons from India," PSE Working Papers hal-00711212, HAL.
  4. repec:hal:wpaper:hal-00711212 is not listed on IDEAS

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