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Social Indicators Research
Published in: Social Indicators Research 2/2017

26-03-2016

Subjective Well-Being in China: Associations with Absolute, Relative, and Perceived Economic Circumstances

Author: Nicholas Otis

Published in: Social Indicators Research | Issue 2/2017

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Abstract

Numerous studies examining the impact of income on subjective well-being (SWB) have found significant positive relationships exhibiting decreasing marginal returns. However, the impact of economic circumstances on SWB is better captured through a combination of income, wealth (per capita net worth), and perceived and relative economic conditions. Using data from the Chinese Household Income Project, I find that within rural and urban China, wealth significantly predicts SWB, exhibiting decreasing marginal returns independent of more common measures of economic circumstances such as income and occupational status. Within urban China, these associations decrease in magnitude and significance with the addition of objective relative measures of wealth and income. Finally, I find that subjective perceptions of relative standard of living are strongly associated with SWB independent of other measures. These results highlight the importance of using multiple objective and subjective measures of economic circumstances, demonstrating potential limitations of studies that have focused exclusively on income as a predictor of well-being. Results are interpreted within the context of China’s changing social and economic structure.
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Appendix
Available only for authorised users
Footnotes
1
The terms “subjective well-being” and “happiness” are used interchangeably throughout this paper.
 
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Metadata
Title
Subjective Well-Being in China: Associations with Absolute, Relative, and Perceived Economic Circumstances
Author
Nicholas Otis
Publication date
26-03-2016
Publisher
Springer Netherlands
Published in
Social Indicators Research / Issue 2/2017
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI
https://doi.org/10.1007/s11205-016-1312-7

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