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How Does Relative Income and Variations in Short-Run Wellbeing Affect Wellbeing in the Long Run? Empirical Evidence From China’s Korean Minority

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  • Vinod Mishra
  • Ingrid Nielsen
  • Russell Smyth

Abstract

Cognitively appraised life satisfaction is relatively stable over time and can be considered as reflecting subjective wellbeing in the long run. Affect is transitory and can be considered as reflecting subjective wellbeing in the short run. Using the Personal Wellbeing Index to measure cognitively appraised life satisfaction and the Positive and Negative Affect Schedule to measure positive and negative affect we examine how income relative to one’s comparator group and variations in short run wellbeing impact upon wellbeing in the long run. We do so for China’s Korean ethnic minority. We find that affective state has an effect on wellbeing in the long run and that a negative shock to affectivity is more persistent than a positive shock. We also find that relative income, rather than absolute income, matters for wellbeing in the long run and that the results are consistent with a status effect. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Vinod Mishra & Ingrid Nielsen & Russell Smyth, 2014. "How Does Relative Income and Variations in Short-Run Wellbeing Affect Wellbeing in the Long Run? Empirical Evidence From China’s Korean Minority," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 67-91, January.
  • Handle: RePEc:spr:soinre:v:115:y:2014:i:1:p:67-91
    DOI: 10.1007/s11205-012-0209-3
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    2. Huong Le & Zhou Jiang & Ingrid Nielsen, 2018. "Cognitive Cultural Intelligence and Life Satisfaction of Migrant Workers: The Roles of Career Engagement and Social Injustice," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 237-257, August.
    3. Zhifang Su & Jr‐Tsung Huang & Arthur Jin Lin, 2021. "House price expectations, mortgages, and subjective well‐being in urban China," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1540-1562, December.
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    5. Asadullah, M. Niaz & Xiao, Saizi & Yeoh, Emile, 2018. "Subjective well-being in China, 2005–2010: The role of relative income, gender, and location," China Economic Review, Elsevier, vol. 48(C), pages 83-101.
    6. Cheng, Zhiming & King, Stephen P. & Smyth, Russell & Wang, Haining, 2016. "Housing property rights and subjective wellbeing in urban China," European Journal of Political Economy, Elsevier, vol. 45(S), pages 160-174.
    7. G. Ribes-Giner & I. Moya-Clemente & R. Cervelló-Royo & M. R. Perello-Marin, 2019. "Wellbeing indicators affecting female entrepreneurship in OECD countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 915-933, March.
    8. Zhiming Cheng & Haining Wang & Russell Smyth, 2014. "Happiness and job satisfaction in urban China: A comparative study of two generations of migrants and urban locals," Urban Studies, Urban Studies Journal Limited, vol. 51(10), pages 2160-2184, August.
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