Declining Subjective Well-Being in Boom: the Case of China

Happiness in China plummeted between 1990 and 2000 despite rapid economic growth. This finding contradicts the notion that income growth leads to gains in happiness. In sociology, people might mentally benefit from social trust and social mobility but suffer from social anomie in a boom. I examine three possible explanations-relative deprivation, social anomie and social trust-with the data from the World Values Survey in 1990 and 2000. Regression model and structural equation model are applied. The results provide strong evidence that economic transition from a command economy to a market economy systematically and substantially influence subjective well-being. Economic inequality and relative deprivation are largely responsible for why happiness has declined in the presence of economic growth. Closer examination reveals that changes in relative income and relative social position account for more fluctuation in happiness than do changes in absolute income. Meanwhile, powerlessness and political distrust alter subjective well-being, although some of their effects are not consistent across regions and waves.