How does civilization promote happiness? Insights from the Civilized Cities Program in China

Abstract

Urban governance aims to enhance overall social welfare, while residents’ happiness frequently falls by the wayside. Civilization, as a critical factor influencing residents’ happiness, has not yet been fully understood regarding its impact and mechanisms. This paper uses the China Family Panel Studies data, which includes around 50,000 samples ranging from 2010 to 2020, to construct a multi-period difference-in-differences model. It finds that China’s highest honor for urban brands, the civilized city program, leads to an average increase of 2.6% in residents’ happiness as measured by life satisfaction. This happiness effect is robust but temporary, gradually diminishing within five years following the honor. The happiness effect is heterogeneous across different waves and city sizes and is effective only for urban residents. Mechanism analysis indicates the happiness effect of the civilized city program through three channels: government efforts, social trust, and identity recognition. Additionally, our research indicates that the civilized city initiative improves residents’ perception of environmental quality and reduces income inequality. These findings provide insights into understanding how the civilization tournament policy promotes happiness.