Economic growth and subjective well-being: analyzing the formative mechanism of Easterlin Paradox

• Main Authors: Lulu Li, Lei Shi
• Format: Article
• Language: English
• Published: SpringerOpen 2019-01-01
• Series: The Journal of Chinese Sociology
• Subjects: Easterlin paradox; Subjective well-being; Economic growth; Social inequality
• Online Access: http://link.springer.com/article/10.1186/s40711-018-0090-9

Abstract In this paper, we investigate the formative mechanism of the Easterlin paradox in China using 2010 Chinese General Social Survey (CGSS) data. By establishing a multi-factor, multi-level dynamic framework, we unveil the formative mechanism of the Easterlin paradox. The impact of multiple factors on subjective well-being and the influence of micro-level individual factors conditional on macro-economic development were analyzed. We find that with economic growth, on the one hand, material needs upgraded to enjoyment needs, and the return to well-being from material conditions decreased. On the other hand, the intensity of social inequality triggered relative deprivation, offsetting the return from economic growth. Therefore, subjective well-being stagnated, instead of increasing with economic growth.