The subjective well-being effect of public goods provided by village collectives: Evidence from China

Village collectives are important providers of rural public goods in developing countries with dual urban-rural structures. However, few studies have investigated the relationship between the public goods provided by village collectives and the subjective well-being (SWB) of rural residents. This study aims to fill that gap. Based on the 2014 round of China Family Panel Studies (CFPS) survey data, this study estimates an ordered logit model of a SWB function to examine the role of the public goods provided by village collectives. The results indicate that village collectives’ provision of public goods has a significantly positive effect on the SWB of rural residents by promoting the dual growth of household income and consumption. Village collectives’ public expenditures on production, education, and public services also positively affect the SWB of rural residents. The public goods provided by village collectives have a significantly positive effect on the SWB of young and middle-aged rural residents but not on the SWB of elderly rural residents. Finally, rural residents with low levels of education and health obtain more SWB effects than do residents with high levels.