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Work effort and subjective well-being of Chinese citizens: Social and individual utility mechanisms

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  • Jiefei, Wang
  • Collins, Alan
  • Hanwen, Xing
  • Shujie, Yao

Abstract

Tensions in Chinese society have emerged as China has developed further, and citizens’ pursuit of subjective well-being gathers pace. Model estimates are generated using 2018 household survey data from China to study the impact of ‘work effort’ on citizens’ subjective well-being. Key findings indicate that: (1) The effort index constructed for this study has a significant positive impact on citizens’ subjective well-being with the results remaining robust to an instrumental variable regression. (2) There is heterogeneity in the influence of the effort index on the subjective well-being of citizens. Its effects among rural citizens and in the lowest income group are insignificant. (3) In terms of social utility, the greater the dispersion in the effort index within a given area, the wider the social income gap, which in turn reduces citizens’ subjective well-being. In terms of individual utility, the effort index affects citizens’ subjective well-being by increasing household income and future expectations. Finally, this paper offers some broad policy recommendations.

Suggested Citation

  • Jiefei, Wang & Collins, Alan & Hanwen, Xing & Shujie, Yao, 2026. "Work effort and subjective well-being of Chinese citizens: Social and individual utility mechanisms," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 922-937.
    • Handle: RePEc:eee:ecanpo:v:91:y:2026:i:c:p:922-937
    DOI: 10.1016/j.eap.2026.03.042
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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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