This paper investigates the extent, nature and determinants of social discontent in
urban China. In common with the growing literature on the economics of
happiness, we analyse individual level data on subjective well-being. Two main
empirical exercises are performed using survey data from 2002. First,
satisfaction with different aspects of life is investigated and their contribution to
overall satisfaction is estimated. Secondly, the socio-economic determinants of
overall satisfaction are modelled. The results point to the role of income and
economic growth in quelling social discontent. Membership of the Communist
Party and political participation also play a positive role. By contrast,
unemployment exerts a strong depressive effect, as does exclusion from state
welfare provision.