Does Economic Growth Raise Happiness in China?

Various measures of satisfaction with life or happiness in China appear not to have risen in recent years, despite China's remarkable growth of income per capita. The paper brings together and integrates the results of four papers by the authors to provide a methodologically and substantively innovative explanation for this paradox. The four papers are based on a cross-section national household survey relating to 2002 and containing questions on subjective well-being. Their findings help to explain the time-series evidence: they highlight the importance of relative income, rising urban insecurity, rapid urbanization, and changing reference groups in preventing happiness from rising with income.