What Keeps Chinaâ€™s Migrant Workers Going? Expectations and Happiness Among Chinaâ€™s Floating Population
AbstractChinaâ€Ÿs rural-urban migrants have been the engine room that has driven Chinaâ€Ÿs high rate of economic growth; however, their living and working conditions are poor. This paper addresses the question: What keeps Chinaâ€Ÿs migrant workers going? We seek to answer this question through examining the determinants of the happiness of Chinaâ€Ÿs rural-urban migrants, drawing on a large-scale survey administered across 12 cities in 2005. We find that expectations as to future income is an important determinant of happiness. This suggests that many migrants expect their financial position and, by extension, their lives more generally to get better in the future and that this is having a positive effect on their current levels of happiness. The effect of optimistic expectations outstrips any realistic increase in own income. We find that for those who expect a big increase in income over the next five years, this translates to an increase in average monthly income of 380 per cent and for those who expect a small increase in income over the next five years this translates to an increase in average monthly income of 200 per cent to obtain an equivalent increase in happiness compared with those who expect no change in income. This finding has important implications for economic growth and socio-economic stability in China given that maintaining socio-economic stability is important to maintain Chinaâ€Ÿs high rate of economic growth and positive expectations about future income are important for maintaining socio-economic stability during times of economic transition.
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Bibliographic InfoPaper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 14-10.
Length: 33 pages
Date of creation: May 2010
Date of revision:
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Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
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Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-18 (All new papers)
- NEP-DEV-2010-09-18 (Development)
- NEP-MIG-2010-09-18 (Economics of Human Migration)
- NEP-TRA-2010-09-18 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002.
"How important is Methodology for the Estimates of the Determinants of Happiness?,"
Tinbergen Institute Discussion Papers
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- Ferrer-i-Carbonell, Ada & Gowdy, John M., 2007. "Environmental degradation and happiness," Ecological Economics, Elsevier, vol. 60(3), pages 509-516, January.
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