Title: Does Money Buy Happiness? Evidence from Twins in Urban China

Speaker: Assistant Professor Maoliang Ye, Xiamen University

Time: October 27th, 2017 15:00–16:30

Venue: Conference Room 106B, Zhonghui Building (College of Economics, JNU)

Abstract:

This paper examines the effect of income on happiness. It is the first such study to draw on twins data and one of the few studies on the causal effect of income on happiness in China. We control for genetic factors and family background using unique Chinese twins data in a within-twin-pair fixed-effects model, and use the instrumental variable fixed-effects method to correct measurement error bias. We find that income has a large positive effect on happiness, which survives a series of robustness checks. Our findings suggest the importance of income support in maintaining the happiness of the poor.