【Abstract】

Although the relationship between income inequality and subjective wellbeing has been extensively discussed in the literature, relatively little is known about the effects of openness on subjective wellbeing and how rural-urban inequality may influence these effects. This article attempts to address this issue by using the dataset of China General Social Survey (CGSS). We find that the effect of trade openness on happiness is inverted U-shaped, whereas that of financial openness is U-shaped. We also find that rural-urban inequality exerts a dampening effect on happiness, and this effect is strengthened by trade openness but weakened by financial openness. These findings extend the previous studies on the determinants of happiness by highlighting the different effects associated with trade openness and financial openness and how such effects may interact with rural-urban inequality.

【Keywords】

Rural-Urban Inequality; Trade Openness; Financial Openness; Happiness

【Authors】

Ma Yong, Senior Research Fellow of IMI, School of Finance, Renmin University of China

Chen Diandian, School of Finance, Renmin University of China