Dissertation
Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

The Research of Laborers’ Income Satisfaction

Author ZhaoZuoLi
Tutor LiPeiJun
School Dongbei University of Finance
Course Population, Resources and Environmental Economics
Keywords Subjective well-being Income satisfaction Income inequality Income evaluation question
CLC F224
Type Master's thesis
Year 2011
Downloads 56
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Happiness is the ultimate goal of life, long time ago philosophers began to research on happiness, later, the economists joined in. Economists’ research on happiness experienced the abandon stage and return stage. Initially, the economic have a low development level, the material wealth determined weather you are happy or not. So, economists believed that rich people have a high sense of happiness. And happiness is a subjective variable, it is difficult to measure, as a result economists put their concentration on the economics growth. Later, as the rapid economic development, various social problems followed by. And people haven’t been much happier. Easterlin paradox describes this contradictory relationship between happiness and income, it caused the return of the economists.Subjective well-being is the psychological well-being, it is the emotional and cognitive evaluation of life quality which people made to their own. Satisfaction is a measurement of subjective well-being, it can also measure the specific aspect of people’s subjective well-being, like income and health. This paper’s content is income satisfaction, it is an important part of subjective well-being, and it reflects the laborers’ attitude and satisfaction to their own incomes. The paper focuses on the following issues:①To know the distribution of the laborers’ income satisfaction in Liaoning province.②Discuss the influence factors of income satisfaction, especially discuss weather the attitude of income gap influences income satisfaction or not.③Calculate the family equivalent scale from the empirical results.④Demonstrate the existence of the "preference drift" phenomenon in the Income evaluation question.Firstly, this paper introduces the theory related to income satisfaction and the literature review. Secondly, we investigated the labors’ income satisfaction in Liaoning province. Thirdly, we use ordered probit model to analyze the influential factors, like income, income inequality, family size, age, marital status, education level, and household register of income satisfaction, from the results of the empirical research, we found that:the average value of laborers’ income satisfaction is 3.96, a little lower than the average value which is 4 in theory; income is the basic influential factor of income satisfaction, the correlative coefficient between them is merely 0.291, but the influence is significant; the laborers who thought that the Gini coefficient of Liaoning province is too big has a lower income satisfaction than the one who thought that the Gini coefficient of our state is not too big; negative relation appears between the family size and income satisfaction, the bigger family size are, the lower income satisfaction is; marital status can affect income satisfaction, married laborers’average value is higher than income unmarried laborer; education level has a positive relationship with income satisfaction; income satisfaction has a U-shape with respect to age, laborers reach a minimum income satisfaction at the age of 50; The household register can also affect income satisfaction; the coefficient of gender is non-significant. In addition, from the empirical results also obtained the family equivalent scale. Fourthly, the paper proved the existence of "preference drift" in the income evaluation question, it explains that the income evaluation standards change as the income increases.At last, the paper gives some suggestions from the empirical result:①The government should focus on people’s subjective well-being and income satisfaction.②Policy makers should perfect the social security system.③Fair income distribution mechanism must be established to regulate the gap between rich and poor.④Leading people form a correct function.⑤The government should accelerate the development of the rural economy.⑥The management should establish proper incentive system to stimulate laborers’ enthusiasm.

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