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Joining the Chinese Communist Party (CCP) is often associated with material returns, but whether and how this contributes to better subjective well-being remains under-researched. Using data from the 2012 Chinese General Social Survey (CGSS), this paper examines the effect of party membership on Chinese residents’ subjective well-being. This paper has found that CCP membership, as a prestigious social identity, has a pure effect on subjective well-being. This happiness effect—termed by this research as identity premium—is greater when party membership is subject to scarcity. These findings suggest that it is the enhanced sense of self-regard brought by the relative value of party membership that boosts people’s satisfaction with life.

“Identity premium” on subjective well-being: Evidence from the Communist Party membership in China