Being a happy farmer: Technology adoption and subjective well-being

Abstract

This paper empirically investigates the impact of technology adoption on farmers’ subjective well-being, as measured by happiness and life satisfaction. A theoretical framework is constructed to link farmers’ subjective well-being to technology adoption, with a particular emphasis on mechanization services in agricultural production. By fitting a nationally representative panel dataset – China Family Panel Studies – into an endogenous switching regression model that addresses potential selection bias, we find that technology adoption leads to a 0.194 standard deviation increase in happiness and a 0.065 standard deviation increase in life satisfaction. Further analysis reveals that the effect is more pronounced for individuals engaged in off-farm employment and varies across farm sizes. To underpin the causal effect, we test three plausible mechanisms – absolute income, relative income, and leisure – which are well-documented in the literature for their correlations with happiness and life satisfaction. Our empirical analysis indicates that the adoption of agricultural mechanization services indeed increases the absolute income of farmers and allows them to allocate more time to leisure activities.