Examining the well-being of the elderly in China

Abstract

This thesis investigates the nature and determinants of well-being with a focus on older adults. The study consists of three empirical papers, examining the effect from three perspectives: social capital, household traveling expenditure and income inequality. Well-being is measured using different aspects such as happiness, life satisfaction, and mental health. Research methods used include factor analysis, estimations by generalised least square and system generalized method of moments as well as hierarchical linear modeling. Using primary survey data, the first paper provides evidence that social capital is more (less) significant than income in improving subjective (objective) well-being, which calls for recalibration in the policy balance between targeting social capital and addressing poverty. Social capital affects well-being through different channels depending on whether it provides marketable or nonmarketable returns. For instance, renqing (gifts and money an individual can give by way of reciprocity towards receiving favours from others) and community integration in the form of social networks improve objective well-being. Social capital in the form of trust on the other hand boosts subjective well-being. Age too has different effects on subjective and objective well-being. While an older person is more satisfied with life, there is however a struggle in owning material things. The lack of correlation between subjective and objective well-being measures further complicates the policy debate. A robust approach to understanding and enhancing well-being in rural, remote areas should thus be an urgent priority in regional policy analyses.