Life Satisfaction in China, 2010–2018: Trends and Unique Determinants

This study is one of the first to explore the 5 waves of the China Family Panel Studies data from 2010 to 2018, assessing determinants of life satisfaction among a representative sample of Chinese individuals divided into different age groups. We employed the random-effects ordered probit method, and then handled endogeneity by estimating an Extended Regression Model. Several crucial conclusions are reached. Gender affects Chinese life satisfaction, and women tend to report higher life satisfaction than men. The Chinese elderly are more satisfied with life than younger individuals, while the “sandwich generation” may expect a long period of low life satisfaction in the future, which indicates that different Chinese generations are experiencing a “U” shaped life satisfaction trend. Surprisingly, education status is not powerful, and would be not a key variable in explaining Chinese life satisfaction, which may be related with “Credential Inflation” caused by the Chinese educational system reforms. Similarly, marital status is not crucial for the elderly’s life satisfaction, indicating that the phenomenon of “Happiness Rift” does not apply evenly in the Chinese society. Moreover, the social resources related with the Hukou type affect the Chinese individuals’ life satisfaction, but the influence may be less significant in the future as the Hukou system undergoes reforms. Lastly, socioeconomic status and subjective individual perceptions, such as relative income, social status, and future confidence, are powerful in explaining Chinese life satisfaction, suggesting that “a Triton among the minnows” analogy characterizes Chinese life satisfaction, which leads to regional discrimination.