Unveiling the direct and indirect effects of sibling size on happiness: evidence from adults in early and mid-adulthood in China

Abstract

Abstract As China grapples with the dual policy challenges of declining birth rates and the pursuit of individual happiness, understanding the relationship between these two factors is important. This study empirically examined the influence of sibling size on happiness in China, distinguishing between direct and indirect channels of impact. Using data from the 2008 Chinese General Social Survey, this analysis focused on how sibling size shapes individual income and education levels, which are both key determinants of happiness. It addressed the endogeneity issue inherent in sibling size by employing variations in the implementation of family planning policies across provinces in the 1970s as instrumental variables. The findings revealed an indirect relationship between sibling size and happiness; an increase in sibling size negatively affected both income and education levels, subsequently reducing happiness. This study contributes to the ongoing dialogue on the relationship between family size and individual happiness in China by offering nuanced insights into the channels through which these effects occur. This study also highlights the policy implications, suggesting that initiatives to raise the birth rate should be accompanied by efforts to enhance income and educational opportunities to foster individual happiness.