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Decoding the “Digital Code” of Happiness: Elaboration Based on Absolute Income and Relative Income

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Abstract

Information and communication technology (ICT) plays an important role in improving and enhancing the well-being of Chinese farmers. This article constructs a theoretical analysis framework of “ICT→ income→farmers’ subjective well-being (SWB)” from the perspectives of relative income and absolute income. It adopts the ordered probit regression (Oprobit), conditional mixed process (CMP) joint estimation model, and micro survey data of apple farmers to analyze the impact of ICT on farmers’ SWB and the mediating effects of absolute income and relative income. The research findings reveal that both ICT access and ICT application significantly increase farmers’ SWB. After controlling for endogeneity, the positive effect of ICT on well-being remains robust. More specifically, regarding ICT access, each additional year of smartphone and internet usage increases farmers’ self-rated SWB by 10 points, corresponding to a 5.1% and 5.6% increase, respectively, in the probability of feeling “very happy”. Regarding ICT application, utilizing information derived from ICT raises farmers’ self-rated SWB by 10 points, resulting in a 23.0% increase in the probability of feeling “very happy”. The mechanism analysis further suggests that ICT access primarily enhances farmers’ SWB indirectly by increasing their absolute income, while ICT application enhances farmers’ SWB indirectly by increasing both their absolute income and relative income. Based on these findings, the policy implications of this study emphasize the importance of the “information to rural areas and households” project, which should focus on building a multi-subject information supply model involving the government, telecom operators, and farmers. The goal is to enhance farmers’ access to and utilization of information to promote their well-being, with specific attention to harnessing the positive effects of ICT and the indirect effects of both absolute and relative income.

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Notes

  1. Upwards (homogeneity, downwards) comparison refers to comparing oneself with individuals who are better (similar, worse) than oneself. In the context of this article, it can be understood as comparing oneself with individuals who have higher (similar, lower) income levels than oneself.

  2. Equal opportunity refers to individuals having the same opportunities to pursue wealth and personal goals.

  3. Due to space limitations, the 2SLS and CMP first-stage estimation results are not displayed in the table.

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Acknowledgements

This study was supported by National Natural Science Foundation of China (72103169).

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All authors contributed to the study conception and design. Material preparation, data collection and analysis were performed by Congying Zhang and **gru **ang. The first draft of the manuscript was written by **gru **ang and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

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Correspondence to Congying Zhang.

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**ang, J., Zhang, C. Decoding the “Digital Code” of Happiness: Elaboration Based on Absolute Income and Relative Income. Soc Indic Res (2024). https://doi.org/10.1007/s11205-024-03349-0

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