Inequality of Opportunity and Subjective Well-being:Evidence from China
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| Title | Inequality of Opportunity and Subjective Well-being:Evidence from China
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| Author | Pan Chunyanga and He Lixin |
| Organization | Business School, East China University of Science & Technology;School of Economics, Fudan University |
| Email | 091015007@fudan.edu.cn,lixinhe@fudan.edu.cn |
| Key Words | Opportunity Inequality; Income Inequality; Subjective Wellbeing; Easterlin Paradox; |
| Abstract | This paper aims to explain China’s Easterlin Paradox from the perspective of opportunity inequality. By using the micro-level data of CGSS (2003, 2005, 2006) and the method of measuring opportunity inequality proposed by Ferreira & Gignoux (2011), this paper decomposes the total income inequality of China’s provinces into two parts: “opportunity inequality” and “effort inequality”, so as to investigate their different impacts on peoples’ subjective wellbeing. It shows that: firstly, opportunity inequality has a significantly negative impact on peoples’ happiness. Secondly, the impact of “effort inequality” is not significant. Thirdly, the total income inequality has a significantly negative impact on peoples’ happiness. Fourthly, opportunity inequality has heterogeneous impacts on the happiness of different social groups; it causes more serious hurts on the happiness of low-income group, rural Hukou holders, non-CPC members and low-education people. These results together suggest that: to protect and promote the social opportunity equality is an essential policy in order to enhance people’ happiness. Also, this paper provides a new perspective in understanding the association between income inequality and subjective wellbeing. |
| Serial Number | WP225 |
| Time | 2012-02-17 |
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