Economic determinants of mental health and well-being: evidence from income dynamics, public health shocks, and fertility policy reform in China

Zhang, Xiao (2026) Economic determinants of mental health and well-being: evidence from income dynamics, public health shocks, and fertility policy reform in China. PhD thesis, University of Glasgow.

Abstract

Understanding the determinants of mental health and subjective well-being has become an increasingly important topic in economics. Although a growing body of research attempts to identify the factors influencing mental health and well-being, important empirical gaps remain in understanding how income dynamics, public health shocks, and fertility policy reform affect these outcomes. This thesis examines these topics through three distinct but interrelated studies.

The first study examines the causal impacts of the relaxation of fertility restrictions on mental health by using the implementation of China’s Universal Two-Child Policy (UTCP) as a natural experiment and adopting a Difference-in-Difference approach. The results indicate that the relaxation of fertility restrictions significantly improves both mental and physical health among affected individuals. The observed improvements are particularly concentrated among younger individuals, married individuals, and those residing in less developed regions. Relative to affected men, affected women generally experienced weaker improvements in several specific emotions of mental health.

The second study examines mental health deterioration during the early stage of the Covid-19 pandemic in China and investigates the moderating role of personality traits in shaping individuals’ mental health response to the public health crisis. The analyses show clear evidence of an increase in the prevalence of severe depression following the Covid-19 pandemic. Particularly, the results suggest that individuals with more open personality experience larger deterioration in mental health, while higher levels of neuroticism do not correspond to more mental health deterioration.

The third study investigates the relationship between income dynamics and life satisfaction using five waves of panel data. The results show that personal income and household income per capita are independently and non-linearly associated with life satisfaction. Specifically, the relationship between household income per capita and life satisfaction is positive and monotonic, with increasing marginal effects. In contrast, the relationship between personal income and life satisfaction follows a U-shaped trajectory. These patterns remain consistent across various population subgroups. Taken together, these studies provide further empirical evidence on the economic determinants of mental health and well-being and offer policy relevant insights into the role of enhanced reproductive autonomy, personality traits, and different measures of income in shaping individual well-being.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Additional Information: Supported by funding from the Cairncross PhD Scholarship, Adam Smith Business School, the University of Glasgow.
• Subjects: B Philosophy. Psychology. Religion > BF Psychology; H Social Sciences > HB Economic Theory; H Social Sciences > HV Social pathology. Social and public welfare; J Political Science > JQ Political institutions Asia
• Colleges/Schools: College of Social Sciences > Adam Smith Business School
• Funder's Name: Cairncross PhD Scholarship, University of Glasgow
• Supervisor's Name: Proto, Professor Eugenio and Battisti, Professor Michele
• Date of Award: 2026
• Depositing User: Theses Team
• Unique ID: glathesis:2026-86126
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 15 Jul 2026 13:40
• Last Modified: 15 Jul 2026 13:41
• Thesis DOI: 10.5525/gla.thesis.86126
• URI: https://theses.gla.ac.uk/id/eprint/86126