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. 2018 Mar;16(1):75-95.
doi: 10.1007/s11150-017-9386-9. Epub 2017 Jul 28.

Life Satisfaction in China and Consumption and Income Inequalities

Xiaoyan Lei  1 , Yan Shen  1 , James P Smith  2 , Guangsu Zhou  3
Affiliations

Life Satisfaction in China and Consumption and Income Inequalities

Xiaoyan Lei et al. Rev Econ Househ. 2018 Mar.

Abstract

This research uses nationally representative data to study how economic resources and inequalities are associated with life satisfaction of Chinese residents. We construct economic resource and inequality measures from expenditure rather than from income, after confirming that expenditure inequality is a better measure in the Chinese context. We find that economic inequalities in general are negatively associated with life satisfaction, and that this association is larger for inequalities in the lower half of the distribution than those in the upper half of the distribution. We further explore the mechanisms under which inequality can be associated with life satisfaction, and find that aspiration is potentially one important channel.

Keywords: China; I01; J01; economic inequality; economic status; subjective well-being.

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Figure 1
Distribution of Life Satisfaction of Chinese Residents
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