Multidimensional Inequality and Subjective Well-Being in China: A Generalized Ordered Logit Model Analysis

Although much attention has been paid to subjective well-being (SWB) in prior literature, the nexus between multidimensional inequality and SWB has yet to be understood. This study attempted to address the gap and examined the effect of multidimensional inequality on SWB, using the generalized ordered logit model and a nationally representative survey data from China. We employed Maasoumi index to measure multidimensional inequality and found that multidimensional inequality of the rural sample was higher than that of urban respondents. Moreover, the comparison analysis suggested a geographical difference in the level of multidimensional inequality across western, central and eastern parts of China. The results of the generalized ordered logit model presented that multidimensional inequality had heterogeneous effects on SWB. In particular, while the econometric analysis showed negative impacts of multidimensional inequality for respondents with lower levels of SWB, the effect of multidimensional inequality on happiness was positive for individuals who self-rated “happy”. This study extended the existing literature on the inequality-SWB link by measuring inequality in a multidimensional setting and provided evidence on the effect of multidimensional inequality on SWB.