Individual Versus Household Income and Life Satisfaction: The Moderating Effects of Gender and Education

Abstract

Previous research has extensively examined the association between income and subjective well-being, but few studies have made a distinction between individual income and household income. China offers an interesting case to study this topic due to its rapid economic and demographic changes. By analyzing data from 12,484 men and 13,828 women aged 15 to 64 based on the nationally representative China Family Panel Studies, the current study estimated the independent effects of individual and household income on self-reported level of life satisfaction. The study further examined whether the relationship differed across gender and education groups. The results suggested that overall, both individual income and household income contributed independently to life satisfaction, but household income appeared to be more influential than individual income. The study further revealed interesting differences between men and women in that individual income showed greater impact on life satisfaction among Chinese men than women. A further stratification by educational status showed that such difference was mainly among the less-educated men and women, but not among those who were well-educated. The findings suggest the greater importance of family factor than individual factor on Chinese people’s subjective well-being. The study also highlights the important role of education in reducing gender disparity in China.