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Happiness Inequality in China

Author

Listed:
  • Yang, Jidong
  • Liu, Kai
  • Zhang, Yiran

Abstract

Along with China becoming an upper-middle-income country from a lower-middle-income one after 2009, the happiness inequality in China has been enlarged. Based on the Chinese General Social Survey (CGSS) database (2003-2012), this paper investigates the determinants of the happiness inequality in China and explores what factors contribute to its enlargement after 2009. We find that a rise of income inequality as well as the population share of middle age cohorts can widen China’s happiness inequality, while an increase in income or education level has a reducing impact. Owning a house and being in employment also have happiness inequality reducing impacts. A decomposition analysis shows that the deterioration of China’s happiness inequality is mainly caused by coefficient effects, i.e., the relationships between happiness inequality and its influencing factors have changed, which reflects the dramatic change in the Chinese economy and society. Among the coefficient effects, regional heterogeneity plays an important role. Policies enhancing economic performance and education as well as reducing income inequality and regional inequality can help to reduce happiness inequality and improve social harmony in China.

Suggested Citation

  • Yang, Jidong & Liu, Kai & Zhang, Yiran, 2015. "Happiness Inequality in China," MPRA Paper 66623, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66623
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.

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    More about this item

    Keywords

    happiness inequality; income; income inequality; education; China;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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