Job quality and employee happiness: evidence from China

Background: 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. Methods: 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: 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. Conclusion: 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.