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The Burden of Social Connectedness: Do Escalating Gift Expenditures Make You Happy?

Author

Listed:
  • Mingzhi Hu

    (Zhejiang University of Technology)

  • Guocheng Xiang

    (Hunan University of Technology and Business)

  • Shihu Zhong

    (Shanghai University of Finance and Economics)

Abstract

Gift expenses escalated in China in the last decades with rapid economic growth and account for a substantial share of household expenditures. Rising gift expenses signal good friendships and facilitate reciprocity, which may enhance one’s subjective wellbeing. However, increasing gift giving may also exacerbate the financial burden of households and thus has adverse welfare implications. This study examines how escalating gift expenses impact individuals’ subjective happiness by using data from the China Family Panel Studies. Findings suggest that an increase in the ratio of gift expenses to household income can significantly decrease one’s subjective happiness by crowding out other consumption items and harming psychological health. Overall, this study offers new insights into informal social networks maintained by gift giving, which may adversely affect household welfare.

Suggested Citation

  • Mingzhi Hu & Guocheng Xiang & Shihu Zhong, 2021. "The Burden of Social Connectedness: Do Escalating Gift Expenditures Make You Happy?," Journal of Happiness Studies, Springer, vol. 22(8), pages 3479-3497, December.
    • Handle: RePEc:spr:jhappi:v:22:y:2021:i:8:d:10.1007_s10902-020-00341-6
    DOI: 10.1007/s10902-020-00341-6
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    References listed on IDEAS

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    2. Yi-Bin Chiu & Zhen Wang & Xu Ye, 2023. "Household gift-giving consumption and subjective well-being: evidence from rural China," Review of Economics of the Household, Springer, vol. 21(4), pages 1453-1472, December.
    3. Li, Junpeng & Ma, Wanglin & Gong, Binlei, 2023. "Market participation and subjective well-being of maize farmers," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 941-960.

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    More about this item

    Keywords

    Gifts; Happiness; Social connection; China;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • Z1 - Other Special Topics - - Cultural Economics

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