Asset poverty and happiness in urban China

Abstract

This study examines the association between asset poverty and happiness in urban China. Asset poverty refers to the insufficiency of assets to satisfy basic household needs for a limited period of time, and data come from a 2002 survey conducted as part of the Chinese Household Income Project. The findings suggest that asset poverty is negatively related to happiness. Asset poverty has a greater marginal effect on happiness among low-income households than among those with higher incomes. The association between asset poverty and happiness is partially mediated by precautionary savings, the household living standard, perceived fairness of the income distribution, and predicted future income. The study discusses the implications of the findings for developing asset-building programmes to improve happiness.

研究探讨了在中国城市地区的资产贫困和幸福感的关系。资产贫困是指短期内缺乏资金用于满足基本的家庭需要。数据来源于2002年的调查，此调查是中国家庭收入项目的一部分。发现显示出，资产贫困与幸福感成反比关系。资产贫困对低收入家庭的幸福感有更强烈的边缘效应。资产贫困和幸福感的关系也受预防储蓄、家庭生活标准、收入分配公平感和预计未来收入的影响。本文讨论了研究结果对发展资产建设项目以提高幸福感的启示。

Keywords:

• assets
• asset poverty
• Chinese Household Income Project (CHIP)
• fairness of the income distribution
• happiness
• household living standard
• precautionary savings
• subjective well-being
• wealth

Acknowledgements

This study was made possible through funding from the Chiang Ching-Kuo Foundation for International Scholarly Exchange. The author is also grateful to the Center for Social Development at Washington University in St. Louis for its support.