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China's Life Satisfaction, 1990-2010

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Author Info

  • Easterlin, Richard A.

    ()
    (University of Southern California)

  • Morgan, Robson

    ()
    (University of Southern California)

  • Switek, Malgorzata

    ()
    (Cornerstone Research)

  • Wang, Fei

    ()
    (University of Southern California)

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Abstract

Despite its unprecedented growth in output per capita in the last two decades, China has essentially followed the life satisfaction trajectory of the central and eastern European transition countries – a U-shaped swing and a nil or declining trend. There is no evidence of an increase in life satisfaction of the magnitude that might have been expected to result from the fourfold improvement in the level of per capita consumption that has occurred. As in the European countries, in China the trend and U-shaped pattern appear to be related to a pronounced rise in unemployment followed by a mild decline, and an accompanying dissolution of the social safety net along with growing income inequality. The burden of worsening life satisfaction in China has fallen chiefly on the lowest socioeconomic groups. An initially highly egalitarian distribution of life satisfaction has been replaced by an increasingly unequal one, with decreasing life satisfaction in persons in the bottom third of the income distribution and increasing life satisfaction in those in the top third.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7196.

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Length: 31 pages
Date of creation: Jan 2013
Date of revision:
Publication status: published in: Proceedings of the National Academy of Sciences, 2012, 109 (25), 9775-9780
Handle: RePEc:iza:izadps:dp7196

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Related research

Keywords: economic growth; Easterlin Paradox; happiness; life satisfaction; subjective well-being; transition countries; China;

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References

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  1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
  2. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2009. "Personal Well-Being In Urban China," Development Research Unit Working Paper Series 01-09, Monash University, Department of Economics.
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Cited by:
  1. Knight, John, 2013. "The economic causes and consequences of social instability in China," China Economic Review, Elsevier, Elsevier, vol. 25(C), pages 17-26.
  2. Knight, John, 2013. "Inequality in China : an overview," Policy Research Working Paper Series 6482, The World Bank.
  3. Siqi Zheng & Matthew E. Kahn, 2013. "Understanding China's Urban Pollution Dynamics," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 731-72, September.
  4. Bonatti, Luigi & Fracasso, Andrea, 2014. "Modeling the Transition Towards Renminbi's Full Convertibility: Implications for China’s Growth," MPRA Paper 54129, University Library of Munich, Germany.
  5. Jiayuan Li & John Raine, 2014. "The Time Trend of Life Satisfaction in China," Social Indicators Research, Springer, Springer, vol. 116(2), pages 409-427, April.
  6. Grund, Christian & Martin, Johannes, 2012. "Monetary Reference Points of Managers: An Empirical Investigation of Status Quo Preferences and Social Comparisons," IZA Discussion Papers 7097, Institute for the Study of Labor (IZA).

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