The Affecting Factors Of Chinese Residents Subjective Well-being: An Economic Analysis

After 30 years of reform and opening up, Chinese people gradually shifted from a focus on economic growth to personal happiness. This paper, using more than 5,000 China samples of the World Values Survey, analysis of the factors which can affect the Chinese people's happiness from 1990 to 2007 and that Whether the effects change over time. This reaearch includes three different well-being indicators and uses both a linear model and the ordered discrete model in regression. This study will help in how to make public policies to improve resident's well-being and a more harmonious society. The main conclusions are as follows:First, from 1990 to 2007, the well-being of Chinese people in general decreased. Women happier than men and the happiness gap between men and women are closest in 1990. Married people happier and the happiness gap of married and single people have been increasing. Whether having children is has no effect on happiness.Second, the subjective well-being and life satisfaction are first decreased and then increased with age, showing a significant U-curve relationship. Happiness is not significantly affected by age. Middle-aged 35-40 years people are the least happy group in the state. But, the degree of happiness gradually increased after 40 years of age, and people 50-60 years old restored to the level of happiness of young people aged 15-20.Third, from 1990 to 2007, the influence of health on happiness increased rapidly, and the impact arrived the highest point in 2007. Overall, the more educated people are happier, but education level had no significant effect happiness in 1990 and 2001.Fourth, overall, income indeed lead to happier life, but the marginal utility of income is diminishing. The same amount of money is getting smaller and smaller increase in happiness. Compareing to absolute income, relative income has more significant effect on happiness, and its influence has not decreased.Fifth, the unemployed population groups are much unhappier. As unemployment rate increasing, subjective well-being and life satisfaction decreased first and then increased. At the unemployment rate of about 3.4%, the residents in China are in the lowest well-being. Unemployment had no significant effect on happiness.Sixth, the inflation rate had a U-curve relationship with subjective well-being and life satisfaction: deflation and high inflation have decreased people happiness, moderate and low inflation makes the highest degree of happiness. Inflation rate had no significant effect on happiness.Seventh, in general, the residents with more confidence of the community are happier; but when using the yearly data, the trust has not significant effect on happiness except 2001. The effect of social anomie on happiness is very significant, its influence rise from 1990 to 2007.Finally, the article presents some recommendations of the policy to improve subjective well-being of Chinese residents: improving health care, basic education, social security system; to strengthen food and drug quality supervision; break the monopoly and promote fair competition; reform the tax system and adjustment of income distribution; more Strict control of inflation; increasing employment opportunities; to strengthen social capital by both government and society.