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.     

Friendship and subjective well-being in Spain: A cross-national comparison with the United States

This paper empirically examines three propositions which are derived from network theory, particularly the relationship between friends' network and happiness level as a subjective well-being indicator. Using friendship network data obtained from 1985 NORC General Social Survey for the U.S., and from 1993 CIRES Social Survey for Spain, a cross-national comparison between Spain and the U.S. was performed. Results are compared with previous major Davis' and Burt's works for the U.S. It was found that there was a significant, strong association between happiness and friends' network size for both countries, and that there was not a great happiness difference between them. However, close friendship has a contrary effect on happiness when data from both countries are compared. Concerning socioeconomic status, happiness increased with income, although this effect was higher in Spain than in the U.S.Financial support for this project was provided by the Department of Sociology, UMA, and University Computer Center. I am indebted to Juan A. Villena and Mary Oliver for helpful comments on early drafts, and to R. Hidalgo for computing assistance.     

Is happiness relative?

The theory that happiness is relative is based on three postulates: (1) happiness results from comparison, (2) standards of comparison adjust, (3) standards of comparison are arbitrary constructs. On the basis of these postulates the theory predicts: (a) happiness does not depend on real quality of life, (b) changes in living-conditions to the good or the bad have only a shortlived effect on happiness, (c) people are happier after hard times, (d) people are typically neutral about their life. Together these inferences imply that happiness is both an evasive and an inconsequential matter, which is at odds with corebeliefs in present-day welfare society. Recent investigations on happiness (in the sense of life-satisfaction) claim support for this old theory. Happiness is reported to be as high in poor countries as it is in rich countries (Easterlin), no less among paralyzed accident victims than it is among lottery winners (Brickman) and unrelated to stable livingconditions (Inglehart and Rabier). These sensational claims are inspected but found to be untrue. It is shown that: (a) people tend to be unhappy under adverse conditions such as poverty, war and isolation, (b) improvement or deterioration of at least some conditions does effect happiness lastingly, (c) earlier hardship does not favour later happiness, (d) people are typically positive about their life rather than neutral. It is argued that the theory happiness-is-relative mixes up ‘overall happiness’ with contentment’. Contentment is indeed largely a matter of comparing life-as-it-is to standards of how-life-should-be. Yet overall hapiness does not entirely depend on comparison. The overall evaluation of life depends also on how one feels affectively and hedonic level of affect draws on its turn on the gratification of basic bio-psychological needs. Contrary to acquired ‘standards’ of comparison these innate ‘needs’ do not adjust to any and all conditions: they mark in fact the limits of human adaptability. To the extend that it depends on need-gratification, happiness is not relative.     

The relationship between income and subjective well-being: Relative or absolute?

Although it appears that income and subjective well-being correlate in within-country studies (Diener, 1984), a debate has focused on whether this relationship is relative (Easterlin, 1974) or absolute (Veenhoven, 1988, 1991). The absolute argument advanced by Veenhoven states that income helps individuals meet certain universal needs and therefore that income, at least at lower levels, is a cause of subjective well-being. The relativity argument is based on the idea that the impact of income or other resources depends on changeable standards such as those derived from expectancies, habituation levels, and social comparisons. Two studies which empirically examine these positions are presented: one based on 18 032 college studies in 39 countries, and one based on 10 year longitudinal data in a probability sample of 4 942 American adults. Modest but significant correlations were found in the U.S. between income and well-being, but the cross-country correlations were larger. No evidence for the influence of relative standards on income was found: (1) Incomechange did not produce effects beyond the effect of income level per se, (2) African-Americans and the poorly educated did not derive greater happiness from specific levels of income, (3) Income produced the same levels of happiness in poorer and richer areas of the U.S., and (4) Affluence correlated with subjective well-being both across countries and within the U.S. Income appeared to produce lesser increases in subjective well-being at higher income levels in the U.S., but this pattern was not evident across countries. Conceptual and empirical questions about the universal needs position are noted. Suggestions for further explorations of the relativistic position are offered.     

Does Individual Secularism Promote Life Satisfaction? The Moderating Role of Societal Development

This study was designed to examine the link between values and life satisfaction, examining the role of culture in this process. Secularism was found to predict life satisfaction scores at a small but statistically very significant level in persons from all nations participating in all four waves of the World Values Survey. The direction and strength of this relationship was moderated, however, by the country’s human development index—people in low-HDI countries consistently showed a negative relationship between secularism and happiness across the four waves of the WVS; people in high-HDI countries initially showed a negative relationship between secularism and happiness in Waves 1 and 2, but a positive relationship between secularism and happiness in Waves 3 and 4. These results thus appear to support a “cultural fit” hypothesis consistently for persons in low HDI countries, and a transition towards a “cultural fit” for persons in HDI countries as data was collected across the four waves. By Wave 4, it is clear that citizens who endorse values consistent with their county’s developmental trajectory are more satisfied with their lives. This study demonstrates the amenability of the data collected by the World Values Survey to individual-level analysis of psychological process that is responsive to the shaping influence of variations in their nation’s societal characteristics.     

The Role of Relative Cohort Size and Relative Income in the Demographic Transition

This paper summarizes the results of other analyses by the author with regard to the importance of relative cohort size (RCS) in determining male relative income (the income of young adults relative to prime-age workers) and general patterns of economic growth, and in turn influencing fertility in the currently more-developed nations. It then goes on to demonstrate that these same effects appear to have been operating in all of the one hundred-odd nations which have experienced the fertility transition since 1950. Parameter estimates based on the experience of all 189 countries identified by the United Nations between 1950 and 1995 are used to simulate the effects on fertility of migration from Third to First World countries. This exercise suggests that we get the best of all possible outcomes with migration: population is reduced in “overcrowded” Third World nations, total world population growth is substantially reduced, and scores of children are given the opportunity of growing up with all the educational and health advantages of U.S. residents.     

National differences in reported subjective well-being: Why do they occur?

There are marked variations between nations in reported subjective well-being (SWB), but the explanations for this diversity have not been fully explored. It is possible that the differences are entirely due to true variability in SWB, but it is also reasonable that the differences may be due to factors related to self-report measurement such as variation across nations in whether it is desirable to say one is happy. At a substantive level, there might be differences in the norms governing the experience of emotion such that cultural differences in SWB are due to affective regulation. Pacific Rim countries (e.g., Japan, the People's Republic of China, and S. Korea) appear to have lower SWB than their material circumstances warrant, and the U.S.A. has higher SWB than is predicted based on its income per person. The genesis of these differences was explored by comparing students in S. Korea, Japan, and the People's Republic of China to students in the U.S.A., and it was concluded that: (1) The Pacific Rim subjects score lower on both happiness and life satisfaction in both absolute terms and when income is controlled, (2) There probably is not a general negative response set in the Pacific Rim which causes lower SWB, as evidenced by the fact that the Asians express dissatisfaction in some areas (e.g., education and self) but not in other areas (e.g., social relationships), (3) Artifacts are not causing the lower reported SWB, (4) The general suppression of mood in the Pacific Rim is unlikely to be the cause of SWB differences, but Chinese students do appear to avoid negative affect, (5) SWB is no less important and salient in Japan and S. Korea, but does appear to be a less central concern in China, and (6) There are different patterns of well-being depending on whether life satisfaction or hedonic balance are considered.     

Relative Income and Happiness in Asia: Evidence from Nationwide Surveys in China, Japan, and Korea

This study attempts to examine relative income effects on perceived happiness in three major Asian countries—China, Japan, and Korea—in comparison with the United Sates, on the basis of largely comparable nationwide surveys in these countries. Consistent with the results from previous studies in Western countries, comparisons with an individual’s own income and average income of the reference group are significantly associated with the individual’s perceived happiness in Asia. The associations between relative income and happiness are stronger for individual income than family income in China, while the opposite is true in Japan and Korea. Even after controlling for the subjective assessment of family income or personal class identification within the society as a whole, income comparisons within the reference group matter for assessing happiness, especially when using family income for comparisons. Moreover, relative deprivation within the reference group, which is measured by the Yitzhaki index, is negatively related to happiness, providing more evidence for the validity of the relative income hypothesis.     

Rising Happiness in Nations 1946–2004: A Reply to Easterlin

The ‘Easterlin paradox’ holds that economic growth does not add to the quality-of-life and that this appears in the fact that average happiness in nations has not risen in the last few decades. The latest trend data show otherwise. Average happiness has increased slightly in rich nations and considerably in the few poor nations for which data are available. Since longevity has also increased, the average number of happy life years has increased at an unprecedented rate since the 1950s.     

Does National Income Inequality Affect Individuals’ Quality of Life in Europe? Inequality,Happiness, Finances,and Health

This paper analyses the effect of income inequality on Europeans’ quality of life, specifically on their overall well-being (happiness, life satisfaction), on their financial quality of life (satisfaction with standard of living, affordability of goods and services, subjective poverty), and on their health (self-rated health, satisfaction with health). The simple bivariate correlations of inequality with overall well-being, financial quality of life, and health are negative. But this is misleading because of the confounding effect of a key omitted variable, national economic development (GDP per capita): Unequal societies are on average much poorer (r = 0.46) and so disadvantaged because of that. We analyse the multi-level European Quality of Life survey conducted in 2003 including national-level data on inequality (Gini coefficient) and economic development (GDP) and individual-level data on overall well-being, financial quality of life, and health. The individual cases are from representative samples of 28 European countries. Our variance-components multi-level models controlling for known individual-level predictors show that national per capita GDP increases subjective well-being, financial quality of life, and health. Net of that, the national level of inequality, as measured by the Gini coefficient, has no statistically significant effect, suggesting that income inequality does not reduce well-being, financial quality of life, or health in advanced societies. These result all imply that directing policies and resources towards inequality reduction is unlikely to benefit the general public in advanced societies.     

The Quality of Life in China

The Asia Barometer Survey of 2,000 respondents reveals that substantial majorities of the Chinese people experience feelings of happiness, enjoyment, and accomplishment. In fact, the proportion experiencing these indicators of a high quality of life are larger in China than in some more prosperous countries. Favorable historical comparison, sustained high economic growth, satisfaction with interpersonal life, and a high percentage of married people are among the explanations for China’s prevalence of subjective well-being. The Chinese people’s high levels of satisfaction with their interpersonal, material, and nonmaterial life domains, their positive assessments of their relative living standards, and their high rate of marriage are three direct positive influences on subjective well-being. Value priorities and other demographic characteristics also have indirect bearings on subjective well-being in China.     

Relationship Between Socio-Economic Values and Wellbeing: An Overview Research in Asia

This paper investigates ten Asian nations to consider how socio-economic values affect happiness and satisfaction. Moreover, it considers whether economic factors can strongly affect wellbeing under certain conditions. Males in Asia are said they have more opportunities to obtain higher happiness and satisfaction but it does not happen in the current study. Unemployment has negative and significant impact with regard to happiness and satisfaction in developing countries yet it does not have the same effect in developed nations. It is believed cultural value positively affects happiness and satisfaction in East Asia but the result in the models is different with no clear relationship between this variable and wellbeing. Furthermore, some people declare that a relative increase of income compared to the lowest group will lead them to lower life satisfaction.     

What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys

The issue of what determines subjective well-being has been at the centre of a recent flurry of research in the economics field. A necessary part of this understanding is the role relative positions (economic, social, geographic) of economic agents, particularly individuals, play in life (commonly referred to in the literature as rivalry). In this paper, we concentrate on whether the structure of happiness equations of South Africa are the same/similar to those of developed countries. The analysis uses three of the Durban Quality of Life Studies. Firstly these three data series are pooled and a variety of covariates are tested for their significance on happiness. These include age, marital status, employment status, household income and relative household income. Next we estimate yearly cross-sectional models to see if there are consistent findings of what determines happiness across the period considered. Our findings indicate there may be some structural differences between results from the Durban studies and those of international findings. Age appears to play no role in happiness likelihood, nor does marital status. Being unemployed does significantly and negatively effect happiness as does the size of household income, relative household income and whether living in a formal dwelling place. When we distinguish between employment categories we find that being self-employed negatively affects happiness, contradicting findings for developed countries. The authors wish to thank members of the Department of Economics, University of the Witwatersrand, participants at the 10th African Econometric Conference, Nairobi 2005 and International Society of Quality of Life Studies, Grahamstown South Africa 2006 as well as one anonymous referee for helpful comments on earlier drafts of this paper.     

Human Capabilities Versus Human Capital: Guaging the Value of Education in Developing Countries

The purpose of this study is to defend the view that education should be evaluated in terms of the capability to achieve valued functionings, rather than mental satisfaction or resources. In keeping with Amartya Sen’s capabilities approach we argue that mental satisfaction provides an inaccurate metric of well-being because of the phenomenon of adaptive preferences. Equally, resources cannot be used as a metric of well-being because of inequalities in the ability to convert income and commodities into valued functionings. Hence, interpreting education as a means to create human capital is also impoverished because it evaluates education solely in terms of the accumulation of resources. In order to provide evidence in support of the human capabilities approach we statistically examine the channels through which educational attainment affects the health functionings implied by life expectancy. Using panel data analysis for 35 developing countries for the years 1990, 1995 and 2000 we compare the health functionings (as indicated by life expectancy) that are achieved by the income growth generated by educational attainment, with the total health functionings that are achieved by educational attainment. We find that educational attainment (as indicated by average years of schooling) has a significant effect on life expectancy independently of its effect by way of income growth. A 1% increase in per capita income increases life expectancy by 0.073954% while a 1% increase in average years of schooling directly increases life expectancy by 0.055324%. Because it shows that income underestimates the health functionings achieved by educational attainment, our empirical findings lend support to the claim that the value of education should be measured in terms of the capability for functioning, rather than resources.     

How Social Relations and Structures can Produce Happiness and Unhappiness: An International Comparative Analysis

In this paper, subjective well being, as measured by survey questions on happiness and life satisfaction, is investigated from a sociological-comparative point of view. The central thesis is that happiness and satisfaction must be understood as the outcome of an interaction process between individual characteristics and aspirations on the one side, and social relations and macrosocial structures on the other side. A distinction is made between life satisfaction and happiness; the former is more seen as the outcome of an evaluation process including material and social aspirations and achievements, the latter as an outcome of positive experiences, particularly close personal relationships. The focus of this paper is on micro- and macrosocial conditions favouring or inhibiting the emergence of happiness and satisfaction. It is hypothesized that dense and good basic social relations, occupational involvement and success, sociocultural (religious and altruistic) orientations and participation are conducive to happiness and life satisfaction; the same should be true at the macrolevel for economic prosperity, relatively equal social structures, a well-established welfare state and political democracy. The latter conditions, however, should be more important for life satisfaction than for happiness. A comparative, multilevel regression analysis of happiness in 41 nations around the world is carried out (using the World Value Survey 1995–1997). Both our general assumption and most of the specific hypotheses could be confirmed. It turned very clearly that “happiness” and “life satisfaction” are two different concepts. It could be shown that microsocial embedding and sociocultural integration of a person are highly relevant for happiness. However, contrary to earlier studies, we find that macrosocial factors like the economic wealth of nation, the distribution of income, the extent of the welfare state and political freedom are also relevant, particularly for satisfaction. What counts most is the ability to cope with life, including subjective health and financial satisfaction, close social relations, and the economic perspectives for improvement in the future, both at the level of the individual and at that of the society. These abilities are certainly improved by favourable macrosocial conditions and institutions, such as a more equal income distribution, political democracy and a welfare state.     

The World Social Situation: Development Challenges at the Outset of a New Century

World social development has arrived at a critical turning point. Economically advanced nations have made significant progress toward meeting the basic needs of their populations; however, the majority of developing countries have not. Problems of rapid population growth, failing economies, famine, environmental devastation, majority-minority group conflicts, increasing militarization, among others, are pushing many developing nations toward the brink of social chaos. This paper focuses on worldwide development trends for the 40-year period 1970–2009. Particular attention is given to the disparities in development that exist between the world’s “rich” and “poor” countries as well as the global forces that sustain these disparities. The paper also discusses more recent positive trends occurring within the world’s “socially least developed countries” (SLDCs), especially those located in Africa and Asia, in reducing poverty and in promoting improved quality of life for increasing numbers of their populations.     

Money Does not Buy Happiness: Or Does It? A Reassessment Based on the Combined Effects of Wealth,Income and Consumption

The paper uses household economic panel data from five countries—Australia, Britain, Germany, Hungary and The Netherlands—to provide a reassessment of the impact of economic well-being on happiness. The main conclusion is that happiness is considerably more affected by economic circumstances than previously believed. In all five countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income.

Income and Happiness in Time of Post-Communist Modernization

This paper discusses the relations between economic development, family income, and happiness in post-communist Poland from the point of view of Inglehart’s theory of modernization. The happiness is understood as satisfaction with income and life, and as psychological well-being. The analysis of survey data yields the conclusion that economic development reduces the strength of the relations between income and satisfaction as well as between income and psychological well-being. These findings may be explained by changes in the value system from collectivist/materialist to individualist/post-materialist, even when these values are not directly measured. The analyzed data are from a series of representative surveys conducted in Poland during a period of political and economic transformation (i.e., between 1989 and 2008). Official statistical data on Polish economic development during the same period are used as a background for survey results. The relations between income and happiness change in Poland in a way consistent with Inglehart’s modernization theory.     

The Robustness of High Danish National Happiness: A Temporal Cross-Country Analysis of Population Subgroups

Denmark’s top position in various rankings of country happiness is well-documented. This study goes beyond the national average comparisons and investigates whether Denmark’s top position is also found when we disaggregate data in line with social categories often used within the social sciences. The central measure is the empirical probability that a given population subgroup in Denmark has significantly higher happiness compared to another country’s similar subgroup in a given year. All five rounds of the European Social Survey are used but only the sixteen countries that were surveyed in each of the five rounds are included in this study. The results show that Denmark’s position at the top of the happiness scale is also robust when we look at population subgroups, but not in the sense that Denmark dominates all countries for all years. Instead, a modified version of robustness is necessary; Denmark very often has significantly higher happiness levels than in other countries, only sometimes has the same happiness levels as in other countries, very rarely is it dominated by other countries, and finally it is never dominated by other countries in all 5 years for a given subpopulation characteristic. This conclusion is quite insensitive to the applied SWB measure and the applied significance level.