Relative Income and Life Satisfaction among Chinese Adults

Chenghua Guan,Ruopeng An,Yingjie Qiu

doi:10.3390/su11205651

Chenghua Guan, Ruopeng An + Show 1 more

Open Access

https://doi.org/10.3390/su11205651

Copy DOI

Abstract

Life satisfaction is a key component of people’s subjective well-being. This study assessed the relationship between relative income and life satisfaction among Chinese adults, using data from a cross-sectional survey. Individual-level data (N = 1369) came from the 2016 China Genuine Progress indicator Survey (CGPiS) conducted in Beijing and Chengdu, China. Ordered logistic regressions were performed to examine the relationship between relative income and life satisfaction among CGPiS adult respondents. Respondents’ life satisfaction was positively associated with relative income in comparison to their relatives and friends but not associated with relative income in comparison to their residing community and city. Subgroup analyses replicated the findings among male respondents and respondents with good or excellent self-rated health. In contrast, female respondents’ life satisfaction was positively associated with relative income in comparison to their city of residence, but not associated with relative income in comparison to their relatives, friends, and residing community. Life satisfaction among those with poor or fair self-rated health was not associated with any of the four dimensions of relative income. Relative income in comparison to relatives and friends was positively associated with life satisfaction in Chinese adults. Future studies adopting a longitudinal or experimental design are warranted to replicate the findings.

Highlights

The respective role of relative income and absolute income in determining people’s life satisfaction has profound implications for policy making, which constantly faces the challenge of balancing considerations of equity and efficiency
This study aimed to assess the relationship between relative income and life satisfaction among Chinese adults
A one-unit increase in male respondents’ relative income in comparison to their relatives and friends was associated with an increase in the odds of being in a higher level of life satisfaction by 22% (OR = 1.22; 95% CI = 1.01, 1.47) and 44% (OR = 1.44; 95% CI = 1.17, 1.78), respectively

Summary

Introduction

The respective role of relative income and absolute income in determining people’s life satisfaction has profound implications for policy making, which constantly faces the challenge of balancing considerations of equity and efficiency. Aimed at improving life satisfaction in the general population, and especially among the poor, should less-developed nations focus more on economic growth as a way to increase people’s absolute income? Since theories provide little guidance regarding the specific cutoff for a nation’s income level, answers to these questions largely depend upon empirical evidence from country-specific analysis. We fielded a cross-sectional survey in two of the largest cities in China, which included questions about respondents’ self-assessments of how their life satisfaction compared to different geographic and non-geographic reference groups. Because it is the world’s most populous country and a nation that has witnessed a very rapid increase in income inequality during its transition from a socialist planned economy to a market-based system.

Objectives

Methods

Results

Conclusion