The Rural-Urban Divide in China: Income but Not Happiness?

The paper presents subjective well-being functions for urban and rural China, based on a national household survey for 2002. Whereas the vast income disparity between urban and rural households is confirmed, it is found that, remarkably, rural households report higher subjective well-being than do t...

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Bibliographic Details
Published in:The Journal of development studies 2010-03, Vol.46 (3), p.506-534
Main Authors: Knight, John, Gunatilaka, Ramani
Format: Article
Language:English
Subjects:
China
Family income
Happiness
Household consumption
Household economics
Households
Income
Income Inequality
Peoples Republic of China
Quality of life
Rural Areas
Rural-urban relations
Survey analysis
Urban Areas
Well Being
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Summary:The paper presents subjective well-being functions for urban and rural China, based on a national household survey for 2002. Whereas the vast income disparity between urban and rural households is confirmed, it is found that, remarkably, rural households report higher subjective well-being than do their richer urban counterparts. A decomposition analysis explores the reasons for this reversal. It finds that there are many determinants of happiness other than absolute income, and that the determinants differ in the two sectors. An explanation for the puzzle is advanced in terms of relative concepts, income inequalities, orbits of comparison, and degrees of insecurity. Positive and normative implications are discussed.
ISSN:0022-0388
1743-9140
DOI:10.1080/00220380903012763