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The puzzle of falling happiness despite rising income in rural China: ten hypotheses

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  • John Knight
  • Bianjing Ma
  • Ramani Gunatilaka

Abstract

With economic development can come social, attitudinal and cultural change, for good or ill or both We pose an unexplored question: why has happiness fallen in rural China whereas rural income has risen rapidly? Two rich data sets are analysed, the rural surveys of the China Household Income Project (CHIP) relating to 2002 and 2013. Our main methods are happiness regressions and decomposition methodology. Several approaches are adopted and no fewer than ten hypotheses are tested. One approach is to examine the variables that are found to be important in happiness functions and to consider their contributions to the fall in the mean happiness score of rural people. Another approach is to analyse the effect on rural happiness of the vast rural-urban migration that took place over this period. This is followed up by introducing tests of the role that changing attitudes might have played.

Suggested Citation

  • John Knight & Bianjing Ma & Ramani Gunatilaka, 2020. "The puzzle of falling happiness despite rising income in rural China: ten hypotheses," Economics Series Working Papers 899, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:899
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    References listed on IDEAS

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    1. John Knight & Li Shi & Yuan Chang, 2014. "Minorities in Rural China: Poorer but Inherently Happier?," CSAE Working Paper Series 2014-26, Centre for the Study of African Economies, University of Oxford.
    2. Knight, John & Deng, Quheng & Li, Shi, 2011. "The puzzle of migrant labour shortage and rural labour surplus in China," China Economic Review, Elsevier, vol. 22(4), pages 585-600.
    3. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    4. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    5. E.Clark, Andrew & Senik, Claudia (ed.), 2014. "Happiness and Economic Growth: Lessons from Developing Countries," OUP Catalogue, Oxford University Press, number 9780198723653.
    6. Xin Meng & Chris Manning & Li Shi & Tadjuddin Nur Effendi (ed.), 2010. "The Great Migration," Books, Edward Elgar Publishing, number 13619.
    7. John Knight & Ramani Gunatilaka, 2011. "Does Economic Growth Raise Happiness in China?," Oxford Development Studies, Taylor & Francis Journals, vol. 39(1), pages 1-24.
    8. AO, Xiang & JIANG, Dawei & ZHAO, Zhong, 2016. "The impact of rural–urban migration on the health of the left-behind parents," China Economic Review, Elsevier, vol. 37(C), pages 126-139.
    9. Andrew E. Clark & Claudia Senik, 2014. "Happiness and Economic Growth: Lessons from Developing Countries," PSE-Ecole d'économie de Paris (Postprint) halshs-01109063, HAL.
    10. Carol Graham & Julia Ruiz Pozuelo, 2017. "Happiness, stress, and age: how the U curve varies across people and places," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 225-264, January.
    11. Connelly, Rachel & Maurer-Fazio, Margaret, 2016. "Left behind, at-risk, and vulnerable elders in rural China," China Economic Review, Elsevier, vol. 37(C), pages 140-153.
    12. Knight, John & Gunatilaka, Ramani, 2012. "Income, aspirations and the Hedonic Treadmill in a poor society," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 67-81.
    13. Easterlin, Richard A. & Morgan, Robson & Switek, Maggie & Wang, Fei, 2013. "China's Life Satisfaction, 1990-2010," IZA Discussion Papers 7196, Institute of Labor Economics (IZA).
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    1. John Knight & Ramani Gunatilaka, 2020. "Income inequality and happiness: perceived or actual, widely or narrowly defined, fair or unfair, self- or community-centred inequality?," Economics Series Working Papers 922, University of Oxford, Department of Economics.

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