Regional Heterogeneity of Life Satisfaction in Urban China: Evidence from Hierarchical Ordered Logit Analysis

Abstract

Given sheer geographic size and unequal regional development, common wisdom may attribute the heterogeneity of individual subjective wellbeing largely to regional disparity in China. Using a hierarchical ordered logit model and the Subjective Survey for Chinese Livelihood Index in 2012, this study however finds that regional factors only account for 3.7 % of total variance of individual subjective wellbeing in urban China. It implies that regional differences are not important for explaining individual happiness though some regional variables are statistically significant. Correspondingly, the Chinese governments should make policies down to individual level to promote people's life satisfaction. Other findings on income and social demographical variables are consistent with the current studies.