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Relative Income, Relative Assets, and Happiness in Urban China

Listed author(s):
  • Jin Huang

    (Saint Louis University)

  • Shiyou Wu

    (University of North Carolina at Chapel Hill)

  • Suo Deng

    ()

    (Peking University)

Registered author(s):

    Abstract Does more money always mean that people are happier with their lives? To test the social comparison hypothesis as applied to happiness, this study uses survey data from the 2002 Chinese Household Income Project to examine the association between household economic resources and happiness in urban China. Household economic resources are measured as both income and assets (e.g., net worth and net worth minus home equity). In addition, the analyses include measures of relative income and relative assets. Results of ordinary least square regression analysis show a positive association of absolute income with the happiness score whereas relative income is negatively associated with happiness. Although household assets are a significant and positive predictor of self-assessments of happiness, measures of relative household assets do not correlate with happiness. Study findings suggest the level of happiness among urban populations could be increased through policies that promote pro-poor growth and equal distribution of economic resources. In addition, introducing asset-building policies as supplements to other social assistance programs may promote happiness.

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    File URL: http://link.springer.com/10.1007/s11205-015-0936-3
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    Article provided by Springer in its journal Social Indicators Research.

    Volume (Year): 126 (2016)
    Issue (Month): 3 (April)
    Pages: 971-985

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    Handle: RePEc:spr:soinre:v:126:y:2016:i:3:d:10.1007_s11205-015-0936-3
    DOI: 10.1007/s11205-015-0936-3
    Contact details of provider: Web page: http://www.springer.com

    Order Information: Web: http://www.springer.com/economics/journal/11135

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