The Dark Side of Chinese Growth: Declining Social Capital and Well-Being in Times of Economic Boom

Over the last two decades, subjective well-being in China declined. Using data from the World Values Survey, we identify predictors of the trend in life satisfaction in China during 1990-2007. Social comparisons and the decline of social capital explain the decrease in well-being, and they are strictly connected to the increasing orientation of Chinese people toward materialistic values. The increasing role of social comparisons is also a key factor in the increase of well-being inequalities between income classes.