How Does the Renewal of Urban Villages Affect the Resettled Villagers’ Subjective Well-Being? A Case Study in Wuhan, China

Abstract

To achieve sustainable development, the improvement of villagers’ subjective well-being has become the main policy goal of urban village renewal. However, the mechanism of how urban village renewal affects subjective well-being remains untested in previous research. Utilizing the survey data on 414 resettled households in the urban village renewal through a random sample method in Wuhan, China, we adopted the intermediary model to test the mechanism of how urban village renewal affects the resettled villagers’ subjective well-being. We explored the contribution rate of each intermediary variable to subjective well-being through Oaxaca–Blinder decomposition and, consequently, proposed corresponding policy suggestions. The results show that the renewal of urban villages can improve the economic conditions, housing conditions, social security status, and living environments of residents and significantly enhance the subjective well-being of the resettled villagers and households. The multi-dimensional changes resulting from the renewal of urban villages increase subjective well-being through complete mediation. The Oaxaca–Blinder decomposition results demonstrate that improvement of the living environment has the strongest influence on subjective well-being, with a contribution rate of 69.81%. In the future, the renewal of urban villages should focus on environmental improvement, protect neighborhood networks, and promote community engagement, so as to realize the sustainable redevelopment of urban villages.

Keywords

• urban village renewal
• subjective well-being
• intermediary effect
• Oaxaca–Blinder decomposition