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Winding Road Toward the Chinese Dream: The U-shaped Relationship Between Income and Life Satisfaction Among Chinese Migrant Workers

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  • Rongwei Chu
  • Henry Hail

Abstract

This study examines the relationship between income and subjective well-being among rural-to-urban migrant workers in China. Our analysis of a recent survey uncovered a U-shaped relationship between income and overall life satisfaction for migrant workers in Shanghai. Furthermore, the positive correlation is curvilinear, showing that increasing income yields diminishing returns. Drawing upon ethnographic literature concerning migrant workers, we suggest several possible explanations. For the poorest migrant workers, small increases in income are correlated with longer working hours and increased social comparison with their urban neighbors. After migrant workers’ income reaches a certain level, however, they are able to save money, giving them hope for future social mobility. Furthermore, migrant workers with disposable income can purchase status symbols, helping them to partially overcome their stigmatized status. The positive effect of income on life satisfaction eventually reaches a plateau, however, as even the wealthiest migrant workers find that they cannot surpass the limitations presented by their outsider identity and lack of an urban residence permit. Other findings include a negative relationship between income and income satisfaction and a positive relationship between education and income satisfaction. We conclude that the unique context surrounding Chinese migrant workers alters the typical effects of certain factors upon well-being and satisfaction. Copyright Springer Science+Business Media Dordrecht 2014

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  • Rongwei Chu & Henry Hail, 2014. "Winding Road Toward the Chinese Dream: The U-shaped Relationship Between Income and Life Satisfaction Among Chinese Migrant Workers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 235-246, August.
    • Handle: RePEc:spr:soinre:v:118:y:2014:i:1:p:235-246
    DOI: 10.1007/s11205-013-0415-7
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    2. Xuechen Leng & Jinfeng Han & Yingcan Zheng & Xiaoyong Hu & Hong Chen, 2021. "The Role of a “Happy Personality” in the Relationship of Subjective Social Status and Domain-Specific Satisfaction in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(4), pages 1733-1751, August.
    3. So-Yun Kim & Gong-Soog Hong, 2015. "Catastrophic Health Expenditures and Life Satisfaction: A Case in South Korea," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 369-382, September.
    4. Qian Liu & Haimin Pan, 2020. "Investigation on Life Satisfaction of Rural-to-Urban Migrant Workers in China: A Moderated Mediation Model," IJERPH, MDPI, vol. 17(7), pages 1-14, April.
    5. Feng Wang & Jin Fan & Ann Reisner & Hong Mi, 2017. "Health Consciousness, Smog Consciousness and Chinese Elderly Migrant Workers’ Preferred Retirement Place," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    6. Yuqi Liu & Ye Liu & Yanliu Lin, 2021. "Upward or downward comparison? Migrants’ socioeconomic status and subjective wellbeing in Chinese cities," Urban Studies, Urban Studies Journal Limited, vol. 58(12), pages 2490-2513, September.
    7. Zhiming Cheng & Vinod Mishra & Ingrid Nielsen & Russell Smyth & Ben Zhe Wang, 2017. "Wellbeing in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 1-10, May.
    8. Li, Lingfang (Ivy) & Wu, Yuting & Zhu, Xun & Chu, Rongwei & Hung, Iris, 2022. "Job Changing Frequency and Experimental Decisions: A Field Study of Migrant Workers in the Manufacturing Industry," MPRA Paper 115472, University Library of Munich, Germany.
    9. Li, Lingfang(Ivy) & Wu, Yuting & Zhu, Xun & Chu, Rongwei & Hung, Iris W., 2024. "Job changing frequency and experimental decisions: A field study of migrant workers in the manufacturing industry," China Economic Review, Elsevier, vol. 85(C).
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