Income Structure And Chinese Household Happiness: Mechanism Analysis And Empirical Test

Income has always been a major factor in the study of the field of happiness in scholars.However,the relationship between income structure and happiness has not been systematically discussed and analyzed.Based on the 2013 China Household Financial Survey data CHFS,using the ordered probit model,we use the combination of theoretical mechanism analysis and empirical research to analyze the relationship between income structure and happiness from the absolute and relative income structure effects;Aiming at the heterogeneity of the income structure and happiness of the urban and rural groups,we use the interaction term and the consumption intermediary effect to explore the role and importance of this effect in urban and rural areas.The research in this paper mainly analyzes from the following items:First,study the impact of four incomes on the positive income structure effect and the relative income structure effect on happiness.The empirical results show that wage income,business income and property income have a significant positive effect on happiness in terms of absolute income structure effect.In terms of relative income structure effect,wage income and property income have significant happiness.The impact,and the impact presents an inverted "U" relationship.The "U" type reflects the phenomenon of "happiness income paradox" in Chinese families.Second,study the heterogeneity of the four incomes on the impact of the two income structure effects on happiness in urban and rural groups.The empirical results show that,compared with urban areas,rural business income has a more significant impact on happiness in terms of absolute income structure effects.Therefore,villagers should increase their operating income from the absolute income structure effect and improve the rural welfare level and life satisfaction.Third,to explore the difference in the contribution of consumption mediation to the income structure’s impact on happiness under the two urban and rural groups.The empirical finding that the property income increases happiness through consumption,the rural mediation effect is far greater than that of urban areas;the rural median income is greater than the town through the absolute income structure effect affecting happiness.Therefore,rural areas are more likely to increase social consumption through financial means;satisfying the desire to consume through operating income has become one of the important channels to improve rural happiness.The above conclusions can be obtained:Firstly,face up to the differences in income structure caused by different family circumstances,to reduce the gap between the rich and the poor caused by the difference and reduce happiness;secondly,in view of the existence of the "heavy income paradox" While raising household income levels,families should also consider the health and psychological damage caused by the reduction of leisure time caused by the increase in income.Finally,relevant departments should consider urban and rural areas when considering the promotion of social well-being.In the case of differences,rural areas should increase the level of operating income and property income,and promote the impact of consumer mediation on happiness,so as to achieve synchronous and harmonious development of urban and rural areas.