Welfare Costs of Inflation: Evidence from China

In this paper, we use the China General Social Survey 2010 data to estimate the impact of inflation on the welfare of residents. By using the happiness research approach, we find that on average, a 0.1 % rise in inflation rate will cause a welfare loss of about 73.0–164.1 RMB, mainly from unexpected inflation. Furthermore, welfare costs to different income groups vary significantly: for those whose household income reaches 100,000 RMB, the welfare loss resulted from a 0.1 % rise in inflation only reduces about 0.057 % of their income, while for the below 10 thousand income group, the cost is as high as 0.739 %. It also shows that there are substantial differences in different income groups’ sensitivities to different kinds of commodities. Specifically, low-income residents are seriously harmed by an increase in food and residence prices, whereas their middle-income counterparts are mainly affected by price changes in healthcare, personal articles, transportation, communication, recreation, and education. Besides, we find that subjective well-being of debtors are significantly boosted by inflation.     

Economic inequality,status perceptions,and subjective well-being in China's transitional economy

Situated in the dynamic institutional environment of China's transitional economy, this study investigates the intricate relationships among economic inequality, status perceptions, and subjective well-being. Empirical evidence is drawn from national survey data collected from urban China. Statistical analyses show that multiple indicators of economic well-being exert a significant effect on self-perceived social status and status change and on subjective well-being. Positive status perceptions further enhance one's subjective well-being. Some of these effects are also moderated by contextual inequality. This study advances the literature by moving beyond income-based measures to examine the consequences of economic disparity. It also shows that status perceptions are the key nexus to probe the impacts of economic well-being and the sources of life satisfaction. Findings further direct our attention to important interplays between the individual-level socioeconomic conditions and the contextual inequality in achieving a deeper understanding of the consequences of socioeconomic inequality.     

Are They Frigid to the Economic Development? Reconsideration of the Economic Effect on Subjective Well-being in Japan

The question about the contribution of economic growth to subjective well-being has caused long-standing debate in the literature on subjective well-being, and Japan is often mentioned as a typical case of no contribution. With a careful examination of the survey text, nevertheless, this study provides a completely opposite result. In other words, the average score of subjective well-being is significantly associated with the level of national income per capita. The study also finds that not only the level of national income per capita but also its growth rate is a significant explanatory variable. However, it is also suggested that a structural subsidence of subjective well-being occurred in the late 1990s, when many Japanese people lost confidence in their traditional economic system.

The Effect of Income on General Life Satisfaction and Dissatisfaction

Increasing evidence from the empirical economic and psychological literature suggests that positive and negative well-being are more than opposite ends of the same phenomenon. Two separate measures of the dependent variable may therefore be needed when analyzing the determinants of subjective well-being. We investigate asymmetries in the effect of income on subjective well-being with a single-item measure of general life satisfaction. Using data from the German Socio-Economic Panel 1984–2004, and a flexible multiple-index ordered probit panel data model with varying thresholds, we find that income has only a minor effect on high satisfaction but significantly reduces dissatisfaction.     

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

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.     

Living Arrangements and the Well-Being of Single Mothers in Japan

The goal of this study is to evaluate the extent to which the well-being of single mothers in Japan is related to coresidence with other adults. Using data from a representative survey of households headed by single mothers, we examine two measures of subjective well-being: perceived economic circumstances and self-rated health. One-fourth of the single mothers surveyed were coresiding with another adult(s) and it is clear that these women fare significantly better than their non-coresiding counterparts on both measures of well-being. Net of several theoretically relevant sociodemographic, family, and employment characteristics, single mothers living with others were significantly less likely to report somewhat difficult/difficult economic circumstances or fair/poor health. Efforts to account for potential endogeneity between well-being and living arrangements suggested that self-rated health, but not subjective economic well-being, is related to selection into coresidence. Single mothers in fair/poor health appear more likely to coreside with others and, accounting for this selection, intergenerational coresidence appears to be very beneficial for self-rated health. We discuss the implications of these findings for processes of stratification in Japan in light of the limited public income support available to single mothers.     

An Assessment of Vulnerability to Poverty in Punjab,Pakistan: Subjective Choices of Poverty Indicators

In general, the happiness literature has paid little attention to the relationship between physical appearance and well-being. In this paper, we examine the link between weight, height and well-being for three distinct samples in China given that attractiveness effects likely vary greatly across sociocultural contexts. As China has recently undergone rapid economic transformation in the urban areas, this empirical exercise is particularly interesting because it can highlight how changing social norms have affected the relationship between physical appearance and subjective well-being. For the rural and migrant samples, we find that for both men and women, big and tall individuals have higher levels of well-being. This is consistent with the notion that the strong are better off when more labor intensive work is the norm. For the urban sample and for urban males in particular, no well-being penalty is found for being obese, unlike previous results based on Western samples. It is very likely that the unique Chinese cultural practice of network building banquets and feasting is behind this finding.     

Rising Economic Prosperity and Social Quality the Case of New Member States of the European Union

This paper considers whether rising economic prosperity in the New Member States of the European Union since joining the EU is also reflected in better a quality of life and what constitutes a better quality of society for the citizens of these countries. The paper contributes to the debate about the relationship between economic conditions and subjective well-being by showing that the factors that contribute to the latter have not only changed with economic growth but that subjective life satisfaction has also improved. Here we consider how this relationship can be explained by using the Social Quality model to measure the quality of society. We look specifically at the New Member States of the European Union (Latvia, Lithuania, Estonia, Poland, Czech Republic, Slovakia, Slovenia, Hungary, Romania and Bulgaria) using the European Quality of Life Surveys for 2003 and 2007. This covers a period during which the economic conditions of these societies improved and they modernised. The social quality model explains a great deal of the variance in life satisfaction and helps us to show that as well as economic factors, other aspects of the quality of society, such as social integration and empowerment, are also important. We argue that economic and social factors have to be understood as interacting with other aspects of society if we seek to understand the quality of society.     

公共物品价格对城镇低收入者收入的动态影响

城镇低收入群体增收是中国十二五期间的重要任务之一。城镇公共物品供给不足和价格上涨是制约低收入者增收的关键因素。文章分析表明,城镇公共物品供给水平与城镇低收入家庭人均可支配收入存在长期均衡关系,且具有正向作用。通过运用VAR模型估算,短期内城镇公共物品价格上涨对低收入者有明显的正向影响,但长期会导致负面影响。文章最后提出建立以公共物品为导向的城镇低收入者增收对策。     

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.     

Quality of Life and Leisure Activities: How do Leisure Activities Contribute to Subjective Well-Being?

The quality of life is determined with objective factors and also with subjective perception of factors which influence human life. Leisure activities play a very important role in subjective well-being because they provide opportunities to meet life values and needs. Through participation in leisure activities people build social relationships, feel positive emotions, acquire additional skills and knowledge, and therefore improve their quality of life. In this report we will explore how leisure activities improve subjective well-being. We will try to distinguish among different types of leisure activities and find those which contribute more to the subjective well-being. Particularly, we will explore which leisure activities contribute to the subjective well-being of women and men of different age. Our study is based on data from a representative sample of Croatian citizens (N = 4,000), who estimated their subjective well-being and participation in various leisure activities. First, we will describe the subjective well-being of various groups of people who differ by gender and age. Afterward, we will identify important leisure activities which determine subjective well-being across age and gender groups. Overall, our results show that engagement in leisure activities contributes to subjective well being, while the pattern of important leisure activities somewhat varies across different age and gender groups.     

Subjective Well-being and Partnership Dynamics: Are Same-Sex Relationships Different?

We analyze Dutch panel data to investigate whether partnership has a causal effect on subjective well-being. As in previous studies, we find that, on average, being in a partnership improves well-being. Well-being gains of marriage are larger than those of cohabitation. The well-being effects of partnership formation and disruption are symmetric. We also find that marriage improves well-being for both younger and older cohorts, whereas cohabitation benefits only the younger cohort. Our main contribution to the literature is on well-being effects of same-sex partnerships. We find that these effects are homogeneous to sexual orientation. Gender differences exist in the well-being effects of same-sex partnerships: females are happier cohabiting, whereas marriage has a stronger well-being effect on males.     

Agent-Based Simulations of Subjective Well-Being

There has been extensive empirical research in recent years pointing to a weak correlation between economic growth and subjective well-being (happiness), at least for developed economies (i.e. the so-called ‘Easterlin paradox’). Recent findings from the behavioural sciences and happiness literature link this paradoxical relationship to negative externalities on utility imposed by social comparison (i.e. relative income with respect to others) and adaptation (habituation to own income in the past). We believe that the type of economic growth (pro-poor, pro-middle, pro-rich, neutral), in combination with sensitivity to social comparison and past income, is a key determinant of happiness trajectories and future utility levels. With the use of agent-based simulations we examine the long-term dynamics of subjective-well-being by focusing attention on the type of growth process rather than the mere size of income growth. We generally find that pro-middle (and balanced) growth corresponds to much higher levels of long-term happiness in comparison to pro-rich growth.     

Is Personality Fixed? Personality Changes as Much as “Variable” Economic Factors and More Strongly Predicts Changes to Life Satisfaction

Personality is the strongest and most consistent cross-sectional predictor of high subjective well-being. Less predictive economic factors, such as higher income or improved job status, are often the focus of applied subjective well-being research due to a perception that they can change whereas personality cannot. As such there has been limited investigation into personality change and how such changes might bring about higher well-being. In a longitudinal analysis of 8625 individuals we examine Big Five personality measures at two time points to determine whether an individual’s personality changes and also the extent to which such changes in personality can predict changes in life satisfaction. We find that personality changes at least as much as economic factors and relates much more strongly to changes in life satisfaction. Our results therefore suggest that personality can change and that such change is important and meaningful. Our findings may help inform policy debate over how best to help individuals and nations improve their well-being.     

Rethinking of Economic Growth and Life Satisfaction in Post-Wwii Japan – A Fresh Approach

Gross Domestic Product (GDP) has been utilized by academics and policy makers to indicate the economic well-being of the people. However, economic growth measures cannot capture fully the overall well-being of the people. This paper has tested quality of economic growth in Japan after World War II as to whether it has brought about positive outcome in the well-being of its citizens. Comparison between GDP and GPI (Genuine Progress Index) has revealed that GDP does not fit as well with people’s life satisfaction trend as GPI. Prefecture-based rankings on GDP, Human Development Index (HDI) and Life Satisfaction have shown that there are clear gaps between objective measures and subjective measures to indicate the overall well-being of the people. Also, analysis on major determinants for people’s life satisfaction reveals that older people, women, non-employed people, and those who live in subsidized housings felt satisfied with their life.     

Panel Quantile Regressions and the Subjective Well-Being in Urban China: Evidence from RUMiC Data

Using RUMiC data and a simple panel quantile regression method, this paper accounts for the time-invariant individual specific characteristics and investigates the heterogeneous effects of factors on the distribution of subjective well-being (SWB, measured by GHQ-12) in urban China. Comparing results from the pooled regression and fixed effect regression, we find that most results from pooled regressions are likely overestimated. Panel quantile regression results show that income affects the least happy 10 % group twice as much as the happiest 10 % people. Being unemployed brings down the happiness level by 0.97 points on average, but individuals with high SWB seem to be not significantly affected. The complete picture of the relationship between SWB and various factors would have been veiled without using quantile techniques. This paper therefore not only contributes to the happiness literature in China, but also adds evidence to stylized findings going beyond the average.     

Measuring Well-Being and Progress

Well-being is becoming a concept which is more and more involved in any world development consideration. A large amount of work is being carried out to study measurements of well-being, including a more holistic vision on the development and welfare of a country. This paper proposes an idea of well-being and progress being in equilibrium with each other. This is distant from the two extreme positions: poor but happy, and rich then happy; too romantic the first, and reductive the second. After a short explanation on the meaning of Objective and Subjective well-being, we show some interesting relations between economic and social variables, and we propose a new index to measure the well-being and progress of the countries: the Well-being & Progress Index (WIP). It includes several aspects of well-being and progress, like human rights, economic well-being, equality, education, research, quality of urban environment, ecological behaviours, subjective well-being, longevity, and violent crime. The most frequently used indexes usually only focus on some aspects, like ecology, or economy, or policy, or education, or happiness, and so forth. On the contrary, this new WIP index allows a global and well-balanced vision, thanks to the large range of indicators used, and how representative they are.     

The Contextual Effects of Political Trust on Happiness: Evidence from China

Political trust is often considered as legitimacy enhancing, but whether political trust is well-being enhancing is still underexplored. Using micro data from the East Asian Social Survey 2012, this study investigates the association between province-level/aggregate political trust and individual happiness in China, and explores the role of economic development in influencing individual political trust after the period of rapid growth in 1990–2010. Results show a positive and significant contextual effect of political trust on individual happiness in China, with the endogeneity problem addressed by an instrument variables method. Currently in China, it is a higher provincial rate of GDP growth rather than GDP per capita that predicts a higher level of political trust. Economic growth still significantly reinforces the level of individual political trust and even helps to raise individual political trust among economically disadvantaged populations. The “critical citizens” phenomenon has not yet grown into a nationwide trend. Since the positive contextual effect of political trust on individual subjective well-being, policy makers are encouraged to maintain the stock of political trust through good governance.     

Family Structure and Subjective Economic Well-Being: Some New Evidence

The paper investigates the main socio-demographic and economic determinants of subjective economic well-being in different typologies of households. Previous studies have used dummy variables to explore the effect of family structure. In this paper, however four different models—one for each family typology—have been estimated to test if each selected explanatory variable is significant and how it acts in determining the level of subjective economic well-being. To achieve this, we apply an under-used logit model—the partial proportional ordered model. Our analysis, based on data from the 2005 Italian Survey on Income and Living Conditions highlights the main variables affecting the subjective economic well-being of all household typologies. These main variables are related to income adequacy, such as being able to afford housing, clothes and holidays, and also include the work-status and level of education of the respondent. These variables produce notable differences in the level of subjective economic well-being. We find that couples with no children have the highest level of perceived economic well-being, while couples with two or more children and even more so one-person households are more economically insecure.     

中国财政政策、货币政策的就业效应--基于面板向量自回归模型的研究

以中国省级面板数据为基础,采用面板向量自回归模型估计了财政政策、货币政策对中国就业与经济增长的影响,结果发现:第一,扩张性财政政策对城镇就业和经济增长都有很强的促进作用;第二,增加货币供给的扩张性货币政策对城镇就业的促进作用有限,然而对经济增长有很强的促进作用;第三,降低利率的货币政策对城镇就业和经济增长的促进作用有限,并且要滞后两年才能显现出来.因此,为了促进就业增长,应当以扩张性的财政政策为主,同时辅之以增加货币供给的扩张性货币政策,以发挥其促进经济增长的作用,从而夯实就业增长的基础.鉴于利率对就业和经济增长的影响具有滞后性,应当保持利率政策的稳定性.