Chinese Journal of Sociology ›› 2016, Vol. 36 ›› Issue (4): 157-185.

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Wealthier and Happier? A Cross-Sectional Time-series Analysis of Easterlin Paradox in China (2003—2013)

WU Hania1,2   

  1. 1. Department of Sociology, Fudan University;
    2. Department of Sociology, The Chinese University of Hong Kong
  • Online:2016-07-20 Published:2016-07-20
  • Supported by:

    This study is supported by the Youth Project of Shanghai Social Science Planning Fund (2012ESH002).

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Abstract:

Forty years ago, economist Richard Easterlin proposed the famous “Easterlin Paradox”: within a short period of time, (both individual and national) wealth is positively correlated with happiness;while in the long run, economic growth has no significant impact on general happiness.Subsequent studies observed empirical inconsistencies when applying time-series analysis to examine the long-term relationship between economic growth and happiness. Therefore, time-series evidence have become the focal point to verify the Easterlin Paradox. China's economic boom has brought research interest in relationship between wealth and happiness, yet mostly are on short-term effects. Little effort has been made to provide the core evidence on Easterlin Paradox by analyzing time-series data, a gap this study seeks to fill in.Cross-sectional time-series data, collected from 2003 to 2013 nationwide in China, are used in this study for both short-term and long-term analyses. Major findings support the proposition of the Easterlin Paradox: (1) significant positive correlation is observed between either household income or provincial GRP per capita and happiness, while (2) no significant correlation is observed between the rapid economic growth and the change of general happiness over the ten years from 2003 to 2013. Possible mechanisms are discussed, including but not limited to rising income inequality, increasing urbanization, growing migrant population and degradation of environment.

Key words: happiness, cross-sectional time-series data, economic growth, Easterlin Paradox