“Identity premium” on subjective well-being: Evidence from the Communist Party membership in China

Abstract

ABSTRACTJoining the Chinese Communist Party (CCP) is often associated with material returns, but whether and how this contributes to better subjective well-being remains under-researched. Using data from the 2012 Chinese General Social Survey (CGSS), this paper examines the effect of party membership on Chinese residents’ subjective well-being. This paper has found that CCP membership, as a prestigious social identity, has a pure effect on subjective well-being. This happiness effect – termed by this research as identity premium – is greater when party membership is subject to scarcity. These findings suggest that it is the enhanced sense of self-regard brought by the relative value of party membership that boosts people’s satisfaction with life.