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Do the Chinese "Keep up with the Jones"?: Implications of peer effects, growing economic disparities and relative deprivation on health outcomes among older adults in China

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  • Ling, Davina C.

Abstract

What are the health effects of unequal economic growth? What are the health consequences of 'keeping up with the Jones'? Many developed countries (e.g., US and Japan) have experienced significant income growth between 1950s and 2000s but population survey shows that on average the population is not growing more satisfied with life. Theories that attempt to respond to these findings hypothesize that as income grows, people may spend more on conspicuous consumption because they compare themselves with others in their peer groups and care about their position in socio-economic distributions relative to others. Indeed, public health studies have found a relationship between income inequality and adult health outcomes in developed countries. Specifically, there seems to be a correlation between social hierarchy and mortality, as well as a correlation between social hierarchy and morbidity. China is a prime study site due to its growing spatial inequalities in the past decade. Though China has been committed to economic reform, different regions and cities have encountered very disparate rates of development and growth. In this paper, we utilize a set of panel data collected in China (China Health and Nutrition Survey 1989-2004) to examine the effects of peer groups, relative deprivation, and income disparities on individual health outcomes such as the probability of high waist circumference, body mass index categories, probability of hypertension, nutritional intake as well as health behavior such as smoking. We use a combination of multi-level mixed effects modeling as well as factor analysis to examine these effects and find significant and differential effects of income quartiles, peer groups, relative deprivation, and Gini coefficient on health.

Suggested Citation

  • Ling, Davina C., 2009. "Do the Chinese "Keep up with the Jones"?: Implications of peer effects, growing economic disparities and relative deprivation on health outcomes among older adults in China," China Economic Review, Elsevier, vol. 20(1), pages 65-81, March.
    • Handle: RePEc:eee:chieco:v:20:y:2009:i:1:p:65-81
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    2. Sun, Yu & You, Wen, 2016. "Relative-deprivation effects on child health in China," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235926, Agricultural and Applied Economics Association.
    3. Chen, Xi & Zhang, Xiaobo, "undated". "Relative Income, Network Interactions and Social Stigma," Papers 90796, 2010 IAMO Forum, June 16-18, 2010, Halle (Saale), Germany.
    4. Xie, Shiqing & Mo, Taiping, 2014. "The impact of education on health in China," China Economic Review, Elsevier, vol. 29(C), pages 1-18.
    5. Cuesta, Maite Blázquez & Budría, Santiago, 2015. "Income deprivation and mental well-being: The role of non-cognitive skills," Economics & Human Biology, Elsevier, vol. 17(C), pages 16-28.
    6. Chee Hon Chan & Ho Kit Wong & Paul Siu Fai Yip, 2017. "Associations of relative income deprivation with perceived happiness and self-rated health among the Hong Kong Chinese population," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 62(6), pages 697-707, July.
    7. Chen, Xi, 2013. "Relative Deprivation in China," MPRA Paper 48582, University Library of Munich, Germany.
    8. Adjaye-Gbewonyo, Kafui & Kawachi, Ichiro, 2012. "Use of the Yitzhaki Index as a test of relative deprivation for health outcomes: A review of recent literature," Social Science & Medicine, Elsevier, vol. 75(1), pages 129-137.
    9. Kwok, Man Ki & Subramanian, S.V. & Leung, Gabriel M. & Schooling, C. Mary, 2015. "Household income and adolescent blood pressure in a Chinese birth cohort: “Children of 1997”," Social Science & Medicine, Elsevier, vol. 144(C), pages 88-95.
    10. Lucio Esposito & Shatakshee Dhongde & Christopher Millett, 2021. "Smoking habits in Mexico: Upward and downward comparisons of economic status," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1558-1575, August.
    11. Darshan Zala, 2013. "Challenging The Spirit Level: Is There Really a Relationship between Inequality and Obesity?," Economic Affairs, Wiley Blackwell, vol. 33(2), pages 232-245, June.
    12. Kai Liu & Xianghong Wang, 2017. "Relative Income and Income Satisfaction: An Experimental Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 395-409, May.
    13. PAN, Jay & QIN, Xuezheng & LIU, Gordon G., 2013. "The impact of body size on urban employment: Evidence from China," China Economic Review, Elsevier, vol. 27(C), pages 249-263.
    14. Jin, Lei & Wen, Ming & Fan, Jessie X. & Wang, Guixin, 2012. "Trans-local ties, local ties and psychological well-being among rural-to-urban migrants in Shanghai," Social Science & Medicine, Elsevier, vol. 75(2), pages 288-296.
    15. Xiaodi Qin & Haitao Wu & Yifeng Xie & Xiaofang Zhang, 2022. "Lagging behind the Joneses: Relative Deprivation and Household Consumption in Rural China," Agriculture, MDPI, vol. 12(11), pages 1-14, November.
    16. Jin, Lei & Tam, Tony, 2015. "Investigating the effects of temporal and interpersonal relative deprivation on health in China," Social Science & Medicine, Elsevier, vol. 143(C), pages 26-35.
    17. Esposito, Lucio & Villaseñor, Adrián & Rodríguez, Enrique Cuevas & Millett, Christopher, 2020. "The economic gradient of obesity in Mexico: Independent predictive roles of absolute and relative wealth by gender," Social Science & Medicine, Elsevier, vol. 250(C).
    18. Maite Blázquez Cuesta & Santiago Budría, 2013. "Does income deprivation affect people’s mental well-being?," Working Papers 1312, Banco de España.
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    20. Chen, Xi, 2015. "Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications," IZA Discussion Papers 9519, Institute of Labor Economics (IZA).

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