Job quality and employee happiness: evidence from China

Despite the rapid economic growth experienced by China in recent decades, issues such as income inequality, occupational stress, and disparities in career advancement opportunities have become increasingly salient, exerting a detrimental influence on the subjective well-being and overall quality of life of employees.

Using a nationally-representative survey data in China, we construct an index of job quality at the individual level using a multidimensional approach and then estimate the effect of job quality on employee happiness.

Results from instrumental variable estimation show that job quality has a significantly positive effect on employee happiness. Moreover, a high-quality jobs enhances employee subjective well-being mainly through pathways including improved mental health and increased harmony perception.

To improve the well-being of employees in developing countries, this paper emphasizes the importance of policy support to improve the quality of their work.