Examining the well-being of the elderly in China

Abstract

This thesis investigates the nature and determinants of well-being with a focus on older adults. The study consists of three empirical papers, examining the effect from three perspectives: social capital, household traveling expenditure and income inequality. Well-being is measured using different aspects such as happiness, life satisfaction, and mental health. Research methods used include factor analysis, estimations by generalised least square and system generalized method of moments as well as hierarchical linear modeling.Using primary survey data, the first paper provides evidence that social capital is more (less) significant than income in improving subjective (objective) well-being, which calls for recalibration in the policy balance between targeting social capital and addressing poverty. Social capital affects well-being through different channels depending on whether it provides marketable or non-marketable returns. For instance, renqing (gifts and money an individual can give by way of reciprocity towards receiving favours from others) and community integration in the form of social networks improve objective well-being. Social capital in the form of trust on the other hand boosts subjective well-being. Age too has different effects on subjective and objective well-being. While an older person is more satisfied with life, there is however a struggle in owning material things. The lack of correlation between subjective and objective well-being measures further complicates the policy debate. A robust approach to understanding and enhancing well-being in rural, remote areas should thus be an urgent priority in regional policy analyses.The second paper considers the impact of variables at three different levels – city, community, and individual – on the older adults’ mental health in China. Evidence shows that community factors such as infrastructure and elderly centers are critical to improve mental health, but the effect of city-level factors such as lowering income inequality and improving public health investment is different for the segments of poor and non-poor as well as the rural and urban residents. This highlights the need to consider targeted policy mix options to avoid resource misallocation. Lastly, Chinese females’ mental health has worsened over time with aging, particularly those who drink alcohol or are less educated are prone to depression prompting the need for specialist women health centers.The study in the third paper examines the two-way relationship between household traveling expenditure and life satisfaction for seniors using nation-wide panel data on China. Results show bidirectional causality, thus highlighting the importance of a two-pronged policy strategy – a government policy committed to social tourism programs for seniors who may not be able to afford travel and those who reside in rural areas. Another aspect of the policy is to address aged concerns related to mobility and health to improve well-being and the provision of appropriate facilities for leisure travel. As senior tourism demand is found to be income inelastic, it can buffer Chinese economic growth in times of economic crisis and uncertainty, making the twin policy strategy a worthwhile consideration.