Institutional Differences in Individual Wellbeing in China

Abstract

An imbalanced distribution of income and welfare characterizes a developing or transitional economy such as China’s. Even after forty years of reform and rapid economic growth, there is still considerable disparity in wellbeing across different institutional settings in China. Major inequalities exist between rural and urban areas, public and for profit sectors, and state-owned and private enterprises. This paper presents the descriptive differences in individual wellbeing across these kinds of institutional settings from objective and subjective perspectives, enabled by the five waves of the Chinese General Social Survey (CGSS; the years of 2010, 2011, 2012, 2013 and 2015). The results show that: (1) people in urban China enjoy more objective wellbeing than people in rural China, but less subjective wellbeing; (2) people who work for the public sector enjoy more objective and subjective wellbeing than those for the for profit sector; (3) people who work for the state owned enterprises enjoy more objective wellbeing than those for the for profit sector, but subjective happiness is not significantly different. Furthermore, people’s perception of subjective wellbeing not only relies upon substantive objective wellbeing, but also an affiliation with a certain type of institution.