Institute of Quality Development Strategy

Abstract: Based on the data from Chinese quality observational survey in 2014, this paper empirically measures the subjective well-being of the middle income class in China, and furtherly investigates the influencing factors from the dimensions of weatlth possession, social welfare and individual capability. Methodologies of descriptive statistics, correlation analysis and structural equation modeling are taken separately. The results indicate that: 1)for the subjective well-being of middle-income class, the female is higher than male, rural is higher than urban, married is higher than unmarried, and it also varied in education, age, occupations and family structure; 2) the most three influencing factors are the ability to achieve personal goals, social justice and the price stability, while the less three factors are household consumption, consumption environment and social security; 3) all factors in the dimensions of wealth possession, social welfare and individual capability are significantly positive correlation with sujective well-being, and especially, the individual capability plays the most important role. Moreover, the individual capability plays not only a direct positive effect but also an indirect positive effect through both wealth possession and social welfare on the subjective well-being of middle income class. Therefore, the key influencing factors of the subjective well-being in Chinese middle income class happiness lies in the individual ability dimension. Furtherly to optimize the environment for economic and social development and to provide fair channels for middle class individuals to show their capability should be the primary way to promote the subjective well-being of middle income class during the transition period in China.