Household debt leverage, social comparison pressure, and residents' happiness

This paper systematically explores the impact mechanism and heterogeneity characteristics of household debt leverage on residents' happiness based on urban panel data from China covering the years 2010 to 2023. The research results indicate that household debt leverage significantly reduces residents' happiness. Further mediation effect analysis reveals that social comparison pressure plays a partial mediating role in the process of household debt leverage affecting residents' happiness. In terms of heterogeneity analysis, the negative impact of household debt leverage on residents' happiness varies across cities with different levels of economic development. The negative effect of household debt leverage on residents' happiness also exhibits heterogeneity across cities with varying industrial structures. Additionally, the mediating effect of social comparison pressure in the relationship between household debt leverage and residents' happiness varies in cities with different industrial structures. This study not only enriches research in the fields of household financial behavior and subjective well-being but also provides policy recommendations for urban governance and enhancing residents' welfare.