Wealth, Happiness and Happiness Inequality in China

Abstract

Link to the book https://link.springer.com/book/10.1007/978-3-030-05535-6 Link to the chapter https://link.springer.com/chapter/ Abstract Much literature explores the relationship between income and happiness, but the literature on wealth and happiness is more limited. We use longitudinal data for China to examine the effect of absolute wealth, relative wealth and key components of wealth on happiness and happiness inequality. We find that wealthier people are generally happier and that the rank order of one's wealth, relative to comparators, matters for happiness. We also find that an increase in the wealth of those to whom we compare ourselves generally lowers happiness, consistent with a jealousy or status effect. Implications of redistributive policies are discussed. 2