54144623
Psychological Mechanisms Linking County-Level Income Inequality to Happiness in China
Background In China, income levels and living standards have improved significantly, but many Chinese citizens still do not feel any happier. This phenomenon may be attributed to increased income inequality. Methods Using data from the 2013 Chinese General Social Survey (CGSS), we employed multilevel structural equation modeling (MSEM) to investigate the impact of county-level income inequality on individual-level happiness in China and multilevel mediation analysis with structural equation modeling (MMSEM) to explore the mechanisms through which income inequality impacted happiness. Results A negative relationship between income inequality and happiness was found. The negative association between them was explained by two psychological mechanisms, i.e., fairness and trust. The findings explained a “Chinese puzzle,” i.e., why people do not feel happier despite improved income and living standards. Conclusions Our findings may provide a reference for policy makers to implement policies designed to improve individual happiness. What is important now is to reduce income inequality, and to potentially improve perceptions of fairness and trust in China.
54743885
Identity, Inequality, and Happiness: Evidence from Urban China
This paper presents the impact of income inequality on subjective well-being using data from the 2002 Chinese Household Income Project (CHIP) Survey. We find that people feel unhappy with between-group inequality, as measured by the income gap between migrants without local urban hukou (household registration identity) and urban residents, irrespective of whether they are urban residents with or without local hukou. However, when we control for identity-related inequality and other individual, household, and city-level characteristics, inequality (as measured by city-level Gini coefficients) positively correlates with happiness. This study contributes to the inequality–happiness literature by distinguishing between the different effects of between-group and general inequality on happiness.
145133831
The China Puzzle: Falling Happiness in a Rising Economy
Over the 1990–2000 decade happiness in China plummeted despite massive improvement in material living standards. This finding contradicts the notion that income growth at low living standards leads to gains, not losses, in happiness. We explain this puzzle by drawing on a specific version of relative deprivation theory, the concept of “frustrated achievers.” Our major finding is that income inequality in China became increasingly skewed towards the upper income strata, so that related to the average income the financial position of most Chinese worsened. Consequently, financial dissatisfaction rose and became an increasingly important factor in depressing happiness. Other negative feelings emerging with rapid transitions, such as anomie and disaffection, show a less depressive effect on Chinese happiness. We conclude with some speculations about the applicability of our findings to transition economies in general.
248785
Income inequality in today’s China
Significance We document a rapid increase in income inequality in China’s recent past, capitalizing on newly available survey data collected by several Chinese university survey organizations. By now, China’s income inequality not only surpasses that of the United States by a large margin but also ranks among the highest in the world, especially in comparison with countries with comparable or higher standards of living. We argue that China’s current high income inequality is significantly driven by structural factors attributable to the Chinese political system, the main structural determinants being the rural-urban divide and the regional variation in economic well-being. Using multiple data sources, we establish that China's income inequality since 2005 has reached very high levels, with the Gini coefficient in the range of 0.53–0.55. Analyzing comparable survey data collected in 2010 in China and the United States, we examine social determinants that help explain China’s high income inequality. Our results indicate that a substantial part of China’s high income inequality is due to regional disparities and the rural-urban gap. The contributions of these two structural forces are particularly strong in China, but they play a negligible role in generating the overall income inequality in the United States, where individual-level and family-level income determinants, such as family structure and race/ethnicity, play a much larger role.
46497304
Socioeconomic determinants of health : Health and social cohesion: why care about income inequality?
Abstract Throughout the world, wealth and income are becoming more concentrated. Growing evidence suggests that the distribution of income–in addition to the absolute standard of living enjoyed by the poor–is a key determinant of population health. A large gap between rich people and poor people leads to higher mortality through the breakdown of social cohesion. The recent surge in income inequality in many countries has been accompanied by a marked increase in the residential concentration of poverty and affluence. Residential segregation diminishes the opportunities for social cohesion. Income inequality has spillover effects on society at large, including increased rates of crime and violence, impeded productivity and economic growth, and the impaired functioning of representative democracy. The extent of inequality in society is often a consequence of explicit policies and public choice. Reducing income inequality offers the prospect of greater social cohesiveness and better population health.
51851201
Life Satisfaction and Income Inequality
Do people care about income inequality and does income inequality affect subjective well-being? Welfare theories can predict either a positive or a negative impact of income inequality on subjective well-being and empirical research has found evidence on a positive, negative or non significant relation. This paper attempts to determine some of the possible causes of such empirical heterogeneity. Using a very large sample of world citizens, the author tests the consistency of income inequality in predicting life satisfaction. The analysis finds that income inequality has a negative and significant effect on life satisfaction. This result is robust to changes in regressors and estimation choices and also persists across different income groups and across different types of countries. However, this relation is easily obscured or reversed by multicollinearity generated by the use of country and year fixed effects. This is particularly true if the number of data points for inequality is small, which is a common feature of cross-country or longitudinal studies.
14185719
Inequality and Happiness: Are Europeans and Americans Different? NBER Working Paper No
The answer to the question posed in the title is 'yes.' Using a total of 128,106 answers to a survey question about happiness,' we find that there is a large, negative and significant effect of inequality on happiness in Europe but not in the US. There are two potential explanations. First, Europeans prefer more equal societies (inequality belongs in the utility function for Europeans but not for Americans). Second, social mobility is (or is perceived to be) higher in the US so being poor is not seen as affecting future income. We test these hypotheses by partitioning the sample across income and ideological lines. There is evidence of inequality generated' unhappiness in the US only for a sub-group of rich leftists. In Europe inequality makes the poor unhappy, as well as the leftists. This favors the hypothesis that inequality affects European happiness because of their lower social mobility (since no preference for equality exists amongst the rich or the right). The results help explain the greater popular demand for government to fight inequality in Europe relative to the US.
144141051
The Association Between Perceived Income Inequality and Subjective Well-being: Evidence from a Social Survey in Japan
Previous studies have shown that income inequality in society is negatively associated with individuals subjective well-being (SWB), such as their perceived happiness and self-rated health (SRH). However, it is not realistic to assume that individuals have precise information about actual income distribution measured by the Gini coefficient or other statistical measures. In the current study, we examined how perceived income inequality, rather than actual inequality, was associated with SWB, using cross-sectional data collected from a nationwide, Internet survey conducted in Japan (N = 10,432). We also examined how this association was confounded by individuals’ objective and subjective income status, considering the possibility that individuals with lower income status are more inclined to both perceive income inequality and feel unhappy/unhealthy. In our analysis, we focused on the perception of widening income inequality (as perceived income inequality), perceived happiness and SRH (as SWB), and household income and living standards compared with 1 year ago and compared with others (as income status). We also controlled for personality traits. We obtained three key findings: (1) perceived income inequality was negatively associated with SWB; (2) both perceived income inequality and SWB were associated with income status; and (3) the association between perceived income inequality and SWB was attenuated after controlling for income status, but not fully for perceived happiness. These findings suggest that perceived income inequality, which links actual income inequality to SWB, should be further studied.
14042379
Inequality-Aversion and Income Mobility: A Direct Test
A number of recent papers have found evidence of interdependencies in utility functions, in that, ceteris paribus, individual well-being falls as others' mean income or consumption increases. This paper asks if, in addition, the distribution of income in the reference group matters. I consider full-time employees in eleven waves of British panel data, and take life satisfaction and the GHQ-12 as measures of individual well-being. I find that (i) well-being falls with average reference group income, but (ii) well-being is significantly positively correlated with reference group income inequality. This finding runs counter to the supposed public dislike of inequality. Last, I show that inequality-loving is strongest for those whose own incomes have shown the most variability over the past three years, and those who are on the steepest income path. As such, income inequality seems to include some aspect of opportunity.
143589898
Income distribution, happiness and satisfaction: A direct test of the interdependent preferences model
Abstract This study utilizes social-psychological measures of happiness and satisfaction in order to test the interdependent preferences model. According to this class of models, in addition to individual characteristics, utility also depends on the well-being of other members of society. Happiness and satisfaction should therefore depend on the average income of society and its distribution among rich and poor. Canadian survey data are used to test this hypothesis. Results differ across alternative measures of subjective well-being. Holding personal characteristics constant, self-reported satisfaction is lower the larger the share of income going to the poorest 40% of the community. A 3-point scale of happiness yields similar results, but not an 11-point scale. The determinants of satisfaction and happiness differ systematically between men and women. Overall, the empirical results support the interdependent preferences model, but defy any simple characterization in terms of inequality aversion and relative economic status.
154018080
Income inequality and happiness in 119 nations
textabstractINCOME INEQUALITY AND HAPPINESS IN 119 NATIONS
All modern nations reduce income differences to some extent, and as a result there is an ongoing discussion about what degree of income inequality is acceptable. In this discussion libertarians oppose egalitarians and a principled consensus between these positions is not possible. Consensus can only be reached on the basis of a consequential ethic and one of these is the ‘greatest happiness principle’. In this paper the utilitarian approach is followed and the relation between income inequality and happiness in 119 nations is considered. Overall happiness is conceptualized as the‘subjective appreciation of life as a whole’ and is measured using responses to survey questions. We considered both average happiness and spread of happiness. We found little relationship between income inequality and average happiness in nations. There was no correlation with average happiness, a slightly positive correlation with average mood and a slightly negative correlation with average contentment. All these correlations became positive when wealth of the nation was controlled. Spread of happiness tended to be larger in income unequal nations, but this effect disappeared when wealth of the nation was controlled. Correlations reflect the balance of positive and negative effects; in the case of average happiness the positive effects prevailed and in the case of spread both effects balanced out. The data do not show a point where the balance shifts
154291183
The Rural–Urban Divide in China: Income but Not Happiness?
Abstract The paper presents subjective well-being functions for urban and rural China, based on a national household survey for 2002. Whereas the vast income disparity between urban and rural households is confirmed, it is found that, remarkably, rural households report higher subjective well-being than do their richer urban counterparts. A decomposition analysis explores the reasons for this reversal. It finds that there are many determinants of happiness other than absolute income, and that the determinants differ in the two sectors. An explanation for the puzzle is advanced in terms of relative concepts, income inequalities, orbits of comparison, and degrees of insecurity. Positive and normative implications are discussed.
154713047
Does Economic Growth Raise Happiness in China?
Various measures of satisfaction with life or happiness in China appear not to have risen in recent years, despite China's remarkable growth of income per capita. The paper brings together and integrates the results of four papers by the authors to provide a methodologically and substantively innovative explanation for this paradox. The four papers are based on a cross-section national household survey relating to 2002 and containing questions on subjective well-being. Their findings help to explain the time-series evidence: they highlight the importance of relative income, rising urban insecurity, rapid urbanization, and changing reference groups in preventing happiness from rising with income.
154267080
The Impact of Income Inequality on Individual Happiness: Evidence from China
Using survey data from China, this paper tests the association between individual self-reported happiness and income inequality. The hypothesized relationship between income inequality and individual happiness is an inverted-U shaped association based on the tunnel effect theory proposed by Hirschman and Rothschild (Q J Econ 87(4):544–566, 1973). Using the Chinese General Social Survey data, we empirically investigate the relationship between income inequality and individual happiness and we find evidence confirming the tunnel effect hypothesis. Specifically, individual happiness increases with inequality when county-level inequality measured by the Gini coefficient is less than 0.405, and decreases with inequality for larger values of the Gini coefficient, where approximately 60 % of the counties in the study have a Gini coefficient larger than 0.405. The inverted U-shaped association exists in both urban and rural China; however, the turning points for urban and rural areas are 0.323 and 0.459, respectively. Between the rich and poor groups, the inverted-U shape relationship exists only in the poor subsample.
33403206
Income Inequality and Happiness
Using General Social Survey data from 1972 to 2008, we found that Americans were on average happier in the years with less national income inequality than in the years with more national income inequality. We further demonstrated that this inverse relation between income inequality and happiness was explained by perceived fairness and general trust. That is, Americans trusted other people less and perceived other people to be less fair in the years with more national income inequality than in the years with less national income inequality. The negative association between income inequality and happiness held for lower-income respondents, but not for higher-income respondents. Most important, we found that the negative link between income inequality and the happiness of lower-income respondents was explained not by lower household income, but by perceived unfairness and lack of trust.
53587520
Inequality and Happiness: When Perceived Social Mobility and Economic Reality Do Not Match
In this paper, we revisit the association between happiness and inequality. We argue that the interaction between the perceived and the actual fairness of the income generation process affects this association. Building on a simple model of individual labor-market participation under uncertainty, we predict that higher levels of perceived fairness cause higher levels of utility, and lower preferred levels of income redistribution. In societies with a low level of actual social mobility, income inequality is perceived more negatively with increased perceived fairness, due to the need for unexpected policy changes as a response to many unsuccessful investments of overly optimistic individuals. This effect becomes smaller as actual social mobility increases. Using data on happiness and a broad set of fairness measures from the World Values Survey, we find strong support for the negative (positive) association between fairness perceptions and the demand for more equal incomes (subjective wellbeing). We also find strong empirical support for the disappointment effect in countries with low social mobility. Consistent with our theoretical model, the results for high-mobility countries turn out to be ambiguous.
44052138
A New Perspective on Equity Theory: The Equity Sensitivity Construct
Equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. This paper describes a new construct, equity sensitivity, and proposes that reactions to equity/inequity are a function of an individual's preferences for different outcome/input ratios. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed.
154142091
Equity: Theory and Research
Chapter 1 Thinking About American Politics Chapter 2 Political Culture Chapter 3 The Constitution Chapter 4 Federalism Chapter 5 Civil Liberties and Civil Rights Chapter 6 Public Opinion and the Media Chapter 7 Political Participation, Voting, and Elections Chapter 8 Political Parties Chapter 9 Interest Groups Chapter 10 Congress Chapter 11 The Presidency Chapter 12 The Federal Court System Chapter 13 The Bureaucracy Chapter 14 Domestic and Foreign Policy
154993322
Relative Deprivation, Envy and Economic Inequality
This paper develops an economic measure of relative deprivation and explores its relationship to envy and economic inequality. It is demonstrated that, while the concept of envy is virtually identical with that of relative deprivation, economic inequality, although a related concept, and a determinant of relative deprivation, is fundamentally different in its intent and purpose. It is also demonstrated that an essential feature of relative deprivation is that it is a nonlinear and nonmonotonic function of economic inequality. As a result, a high degree of economic inequality means only a low degree of relative deprivation. Copyright 1996 by WWZ and Helbing & Lichtenhahn Verlag AG
1117476
Trust and economic growth: a robustness analysis
This paper analyses the robustness of results on the relationship between growth and trust previously derived by Knack and Keefer (1997) and Zak and Knack (2001) along several dimensions, acknowledging the complexity of the concept of robustness. Our results show that the Knack and Keefer results are only limitedly robust, whereas the results found by Zak and Knack are highly robust in terms of significance of the estimated coefficients and reasonably robust in terms of the estimated effect size. The improvement in robustness is caused by the inclusion of countries with relatively low scores on trust (most notably, the Philippines and Peru). Overall, our results point at a relatively important role for trust. However, the answer to the question how large this payoff actually is depends on the set of conditioning variables controlled for in the regression analysis and--to an even larger extent--on the underlying sample. Copyright 2004, Oxford University Press.
154797409
Does Social Trust Increase Individual Happiness in Japan?
Economists are mainly interested in trust as being growth enhancing, but whether trust is well-being enhancing is underexplored. This paper examines if trust is intrinsically valuable by using individual happiness data from Japan. I attempt to mitigate the problem of non-random selection of residents by restricting the sample to non-movers. I also address reverse causality by instrumenting trust with residential stability, as trust should be higher for a more stable community. I find that trust has positive and significant effects on individual happiness. The instrumental variables approach suggests that social trust has a causal effect on individual happiness.
153615152
The Happy Few: Cross-Country Evidence on Social Capital and Life Satisfaction
No abstract available.
189841921
The bigger the better? Evidence of the effect of government size on life satisfaction around the world
This paper empirically analyzes whether government size is conducive or detrimental to life satisfaction in a cross-section of 74 countries. We thus provide a test of the longstanding dispute between standard neoclassical economic theory and public choice theory. According to the neoclassical view, governments play unambiguously positive roles for individuals' quality of life, while the theory of public choice has been developed to understand why governments often choose excessive involvement in – and regulation of – the economy, thereby harming their citizens' quality of life. Our results show that life satisfaction decreases with higher government consumption. For low, middle income, and male people, this result is stronger when the government is leftwing, while government consumption appears to be less harmful for women when the government is perceived to be effective. Government capital formation and social spending have no significant impact on life satisfaction.
145373751
Structures and Processes of Social Support
This chapter reviews the recent literature on social support and health and its relation to preexisting research and theory in the areas of social networks and social integration. We identify crucial directions for future theoretical and empirical work, focusing on the need to better understand the structures and processes through which social relationships affect human health and well-being. Two elements of social relationship structure are distinguished: (a) social integration, which refers to the existence or quantity of social relationships, and (b) social network structure, referring to the structural properties that characterize a set of relationships. We further identify three social processes through which these structures may have their effects: (i) social support, which pertains to the emotionally or instrumentally sustaining quality of social relationships; (ii) relational demands and conflict, referring to the negative or conflictive aspects of social relationships; and (iii) social regulation...
41845376
Social Support and Happiness in Immigrant Women in Spain
The association between perceived social support and happiness was investigated in women who are members of various associations in Malaga (Spain) that work with immigrant women. Based on the Social Convoy model, the association between sources of support, frequency of support, satisfaction with support, and happiness reported by women were examined. The main social support predictor of happiness was satisfaction with the support received. Thus, the best predictors of happiness were emotional support from the family and instrumental support from the indigenous population and associations. The best predictor of frequency of support was the frequency of informational support received from social services. These results may prove useful for developing lines of action or interventions centred on the social network and the functions that social support can fulfil among immigrant women.
208653327
ALL FOR ALL Equality, Corruption, and Social Trust
' I *HE importance of social trust has become widely accepted in the JL social sciences. One reason for the interest in social trust is that, as measured in surveys, it correlates with a number of other variables that are normatively highly desirable. At the individual level, people who believe that in general most other people in their society can be trusted are also more inclined to have a positive view of their democratic institutions, to participate more in politics, and to be more active in civic organizations. They also give more to charity and are more tolerant toward minorities and to people who are not like themselves. Trusting people also tend to be more optimistic about their own ability to influence their own life chances and, not least important, to be more happy with how their life is going. We see the same positive pattern at the societal level. Cities, regions, and countries with more trusting people are likely to have better work-
144922222
Level and Inequality of Happiness in Nations: Does Greater Happiness of a Greater Number Imply Greater Inequality in Happiness?
Utilitarians and egalitarians have different priorities. Utilitarians prioritize the greatest level of happiness in society and are prepared to accept inequality, while egalitarians prioritize the smallest differences and are willing to accept a loss of happiness for this purpose. In theory these moral tenets conflict, but do they really clash in practice? This question is answered in two steps. First I consider the relation between level and inequality of happiness in nations; level of happiness is measured using average responses to a survey question on life satisfaction and inequality is measured with the standard deviation. There appears to be a strong negative correlation; in nations where average happiness is high, the standard deviation tends to be low. This indicates harmony instead of tension. Secondly I consider the institutional factors that are likely to affect happiness. It appears that level and equality of happiness depend largely on the same institutional context, which is another indication for harmony. We may conclude that the discussion between utilitarians and egalitarians is of little practical importance. This conclusion implies that increasing income inequality can go together with decreasing inequality in happiness and this conclusion provides moral support for Governments developing modern market economics
21673437
Will Happiness Improve the Psychological Integration of Migrant Workers?
Happiness is a major factor that influences people’s perceptions and behavior. Two-stage least squares regression was applied to investigate the effect of happiness on the psychological integration of migrant workers in China. The data for a total of 1625 individuals were obtained from the 2014 China Labor-force Dynamics Survey (CLDS). This study describes happiness from three main aspects: happiness, life satisfaction, and economic satisfaction. The psychological integration includes two dimensions of settlement willingness, and trust level; these have gone through dimension-reduced processing by using the weighted average method. The empirical evidence shows, first, that happiness has a significantly positive effect on the psychological integration of migrant workers and second, that the sense of life satisfaction in particular plays a more significant role. The acceleration of the social and political integration in migrant workers will enhance their psychological integration. Additionally, social, cultural and economic integration is found to influence migrant workers’ psychological integration by promoting happiness. Happiness between different generations of migrant workers was found to have a noticeably positive impact on their psychological integration; however, the happiness of the younger migrant workers was more perceivable than that of the other generations. Preferential policies should therefore be provided to improve the happiness of migrant workers.
40890014
How Important is Methodology for the Estimates of the Determinants of Happiness?
Psychologists and sociologists usually interpret happiness scores as cardinal and comparable across respondents, and thus run OLS regressions on happiness and changes in happiness. Economists usually assume only ordinality and have mainly used ordered latent response models, thereby not taking satisfactory account of fixed individual traits. We address this problem by developing a conditional estimator for the fixed-effect ordered logit model. We find that assuming ordinality or cardinality of happiness scores makes little difference, whilst allowing for fixed-effects does change results substantially. We call for more research into the determinants of the personality traits making up these fixed-effects.
5196511
Determinants of and socio-economic disparities in self-rated health in China
BackgroundSelf-rated health (SRH) is not only used to measure health status and health inequalities, but also as a strong predictor of morbidity and mortality. The purpose of this study was to: 1) evaluate the factors that account for variations in self-rated health among Chinese citizens; and to 2) explore the process through which socio-economic status may impact self-rated health.MethodsData were derived from the Chinese General Social Survey (CGSS) (2013). Determinants of self-rated health were analyzed along four main dimensions: demographic characteristics, socio-economic status, lifestyle, and psychosocial factors. Multivariate odds ratios for good self-rated health were calculated for different variables in order to analyze the determinants. Binary logistic regression analysis was performed to assess the extent to which lifestyle and psychosocial factors explained the association between socio-economic status and self-rated health.ResultsAbout 65% of the survey respondents reported good self-rated health. Women, the elderly, married or single respondents and residents of Western China were less likely to report good self-rated health. Respondents who were engaged in work, had higher household income, reported high social class and higher socio-economic status compared with peers were more likely to report good self-rated health. Normal weight and physically active respondents along with those reporting a happy life, no depression, and good relationships with families and friends were related to good self-rated health. We also found the effect of socio-economic status on self-rated health was partly explained by lifestyle and psychosocial factors.ConclusionThe present findings support the notion that both socio-economic status and lifestyle as well as psychosocial factors were related with good self-rated health. The interventions targeting these factors could improve the health status of the population. The depression was the most influential predictor of self-rated health, especially for the women and the elderly. Although lifestyle and psychosocial factors explained partly the the association between socio-economic status and health, the reason why socio-economic difference exists in health must be further explored. What’s more, it needs to be further studied why the same determinant has different influence strengths on the health of different groups of people.
154936427
Subjective Well-Being Analysis of Income Inequality: Evidence for the Industrialized and Emerging Economies
Subjective well-being analysis of income inequality finds that very high levels of objective inequality are considered “bad” in both the industrialized and emerging economies covered in the study. People from the industrialized economies appear to be more sensitive to mild levels of objective inequality compared to those from the emerging economies. Subjective inequality, on the other hand, is not considered “bad” in the same industrialized and emerging economies covered in the study. People from both areas appear to tolerate subjective inequality provided it is the outcome of an impartial environment founded upon rules observed by the majority. There, however, remains the need to help people recognize the importance of addressing inequalities in order for them to demand a more equitable distribution of income in society.
154305429
Socio-Economic Inequalities in Happiness in China and U.S.
Our paper studies the determinants of happiness in China and U.S. and provides a better understanding of the issue of inequalities in happiness beyond income inequality. Based on the two waves of nation-wide survey data on happiness collected by World Values Survey in 1995 and 2007, Probit and ordinary least square methods are used to estimate effects of various factors on happiness. Our findings show that socio-economic inequalities increase inequalities in happiness in China. The poor are the least happy even though the income effect flats out at the high end. Individuals with below high school education attainment are less happy than those with more education. Agricultural workers are the most unhappy and are becoming even more unhappy over time. However, in U.S., there is no systematic difference in happiness across income and education groups and between agricultural and non-agricultural workers. In both countries health is a major factor contributing to happiness. Our study implies that adequate provision of national health care services should be an effective way to improve social welfare. Besides, since the probability of being happy for agricultural workers is still considerably less after controlling for income in China, policies to improve their welfare should not be limited to enhancing current income.
154405705
Political connections, financing and firm performance: Evidence from Chinese private firms ☆
This paper examines the role of affiliation with the ruling Communist Party in the operation of private enterprises in China. Using a nationwide survey of private firms, we find that the Party membership of private entrepreneurs has a positive effect on the performance of their firms when human capital and other relevant variables are controlled. We further find that Party membership helps private entrepreneurs to obtain loans from banks or other state institutions, and affords them more confidence in the legal system. Finally, we find Party membership to be more important to firm performance in regions with weaker market institutions and weaker legal protection. © 2007 Elsevier B.V. All rights reserved.
8778884
The relationship between happiness, health, and socio-economic factors : Results based on Swedish microdata
This paper investigates the relationship between happiness (utility) and a host of socio-economic variables. The data set consists of a random sample of over 5,000 individuals from the Swedish adult population. Happiness is measured by a three-point categorical measure of overall happiness (not happy, happy sometimes, happy most of the time), and an ordered probit model is used to econometrically estimate the happiness equation. The results are consistent with the theoretical predictions and show that happiness increases with income and education and decreases with unemployment, urbanisation, being single, and male gender. The relationship between age and happiness is U-shaped, with happiness being lowest in the age-group 45-64.
24693372
Heaviness, health and happiness: a cross-sectional study of 163066 UK Biobank participants
Background Obesity is known to increase the risk of many diseases and reduce overall quality of life. This study examines the relationship with self-reported health (SRH) and happiness. Methods We conducted a cross-sectional study of the 163 066 UK Biobank participants who completed the happiness rating. The association between adiposity and SRH and happiness was examined using logistic regression. SRH was defined as good (excellent, good), or poor (fair, poor). Self-reported happiness was defined as happy (extremely, very, moderately) or unhappy (moderately, very, extremely). Results Poor health was reported by 44 457 (27.3%) participants. The adjusted ORs for poor health were 3.86, 2.92, 2.60 and 6.41 for the highest, compared with lowest, deciles of Body Mass Index, waist circumference, waist to hip ratio and body fat percent, respectively. The associations were stronger in men (p<0.001). Overall, 7511 (4.6%) participants felt unhappy, and only class III obese participants were more likely to feel unhappy (adjusted OR 1.33, 95% CI 1.15 to 1.53, p<0.001) but the associations differed by sex (p<0.001). Among women, there was a significant association between unhappiness and all levels of obesity. By contrast, only class III obese men had significantly increased risk and overweight and class I obese men were less likely to be unhappy. Conclusions Obesity impacts adversely on happiness as well as health, but the association with unhappiness disappeared after adjustment for self-reported health, indicating this may be mediated by health. Compared with obese men, obese women are less likely to report poor health, but more likely to feel unhappy.
153788968
Relative Income, Relative Assets, and Happiness in Urban China
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.
62786600
Economic growth, income inequality and subjective well-being: Evidence from China
This paper examines the subjective consequence of rising income inequality amidst the rapid economic growth in China. Based on the data from a national representative survey conducted in 2005, we employ multi-level models to show that, while personal income improves life satisfaction, the effect decreases with the level of local economic development; moreover, the rate of local economic growth has a positive effect, but local income inequality has a negative effect, on individuals’ life satisfaction. Our findings help to clarify the mixed results in previous studies and point to the importance of both economic and social policies in improving people’s subjective well-being in China’s transitional economy. Economic Growth, Income Inequality and Subjective Well-being in China 3
17160809
Income-related children’s health inequality and health achievement in China
IntroductionThis study assessed income-related health inequality and health achievement in children in China, and additionally, examined province-level variations in health achievement.MethodsLongitudinal data on 19,801 children under 18 years of age were derived from the China Health and Nutrition Survey. Income-related health inequality and health achievement were measured by the Health Concentration and Health Achievement Indices, respectively. Panel data with a fixed effect multiple regression model was employed to examine province-level variations in health achievement.ResultsA growing trend was towards greater health inequality among Chinese children over the last two decades. Although health achievement was getting better over time, the pro-rich inequality component has lessened the associated gain in achievement. Health achievement was positively impacted by middle school enrollments, the urbanization rate, inflation-adjusted per capita gross domestic product, and per capita public health spending.ConclusionThis study has provided evidence that average health status of Chinese children has improved, but inequality has widened. Widening inequality slowed the growth in health achievement for children over time. There were wide variations in health achievement throughout China.
153528065
Capital Income and Income Inequality: Evidence from Urban China
Using urban household survey data collected by National Bureau of Statistics of China from 1988-2009, this study examines the distribution, composition, and changes of capital income and its contribution to income inequality. The data shows that capital income has increased considerably in past 20 years in urban China. Although the average value of capital income is still relatively low, the dispersion of capital income is significant, and for high-income earners capital income is substantial. Compared to other forms of income, capital income is distributed the most unequally, and its contribution to total income inequality has been growing. This study also examines capital income in China’s western, central, and eastern regions separately, and finds that capital income is highest and contributes the most to income inequality in the eastern region.
13651006
Would You Be Happier If You Were Richer? A Focusing Illusion
The belief that high income is associated with good mood is widespread but mostly illusory. People with above-average income are relatively satisfied with their lives but are barely happier than others in moment-to-moment experience, tend to be more tense, and do not spend more time in particularly enjoyable activities. Moreover, the effect of income on life satisfaction seems to be transient. We argue that people exaggerate the contribution of income to happiness because they focus, in part, on conventional achievements when evaluating their life or the lives of others.
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Mediation Analysis in Social Psychology: Current Practices and New Recommendations
A key aim of social psychology is to understand the psychological processes through which independent variables affect dependent variables in the social domain. This objective has given rise to statistical methods for mediation analysis. In mediation analysis, the significance of the relationship between the independent and dependent variables has been integral in theory testing, being used as a basis to determine (1) whether to proceed with analyses of mediation and (2) whether one or several proposed mediator(s) fully or partially accounts for an effect. Synthesizing past research and offering new arguments, we suggest that the collective evidence raises considerable concern that the focus on the significance between the independent and dependent variables, both before and after mediation tests, is unjustified and can impair theory development and testing. To expand theory involving social psychological processes, we argue that attention in mediation analysis should be shifted towards assessing the magnitude and significance of indirect effects.