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. 2018 Nov 27;15(12):2667.
doi: 10.3390/ijerph15122667.

Psychological Mechanisms Linking County-Level Income Inequality to Happiness in China

Jiaoli Cai  1 , Li Zhang  2 , Yulin Zhao  3 , Peter C Coyte  4   5
Affiliations

Psychological Mechanisms Linking County-Level Income Inequality to Happiness in China

Jiaoli Cai et al. Int J Environ Res Public Health. .

Abstract

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.

Keywords: China; fairness; happiness; income inequality; trust.

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Conflict of interest statement

The authors declare no conflict of interest.

Figures

Figure 1
Figure 1
Conceptual model examining Hypothesis 1.
Figure 2
Figure 2
Conceptual model examining Hypothesis 2.
Figure 3
Figure 3
The impact of income inequality on happiness.
Figure 4
Figure 4
The links between income inequality and happiness.
See this image and copyright information in PMC

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