Psychological needs and social comparison: a dual analysis of the life satisfaction of local workers with agricultural hukou

Abstract

Background

Based on their place of employment, workers with agricultural hukou (WAH) are categorized into local workers with agricultural hukou (LWAH) and migrant workers with agricultural hukou (MWAH). Research shows that although LWAH often find themselves at a disadvantage in terms of labour income and access to public services, the significant growth of this group in recent years has drawn attention to their choice of workplace and the factors influencing it. Guided by the theories of self-determination and social comparison, this study aims to explore the impact of the differences between LWAH and MWAH in psychological needs and social comparisons on life satisfaction, as well as the underlying mechanisms.

Methods

This study utilizes data from the China Family Panel Studies (CFPS) from 2014 to 2020, employing a two-way fixed effects model to investigate the differences in life satisfaction between 1,976 LWAH and MWAH. Additionally, propensity score matching (PSM) is used to conduct regression analysis on the matched sample, providing a more accurate comparison of life satisfaction between LWAH and MWAH under similar individual characteristics. Finally, the study further examines the mediating effects of perceived social status and job satisfaction and analyses the differences in life satisfaction between LWAH and MWAH across dimensions such as generation, region, and work conditions.

Results

The baseline regression results indicate that LWAH have significantly higher life satisfaction compared to MWAH, and this finding is robust to various tests. Mediation analysis reveals that perceived social status plays a mediating role in the difference in life satisfaction between LWAH and MWAH, while job satisfaction does not have a significant mediating effect. Heterogeneity analysis further shows that intergenerational, regional, and work condition differences have varying impacts on the life satisfaction of two groups.

Conclusions

This study provides important insights into understanding the workplace choices and quality of life of Chinese workers with agricultural hukou. Finally, to effectively promote situ urbanization processes, local governments need to prioritize enhancing workers with agricultural hukou (WAH)’s autonomy, sense of competence, and social status, thereby improving their perceived social status in society and attracting more labourers to return to their hometowns for work and entrepreneurship.

In the face of the unstoppable trend of urbanization, many countries worldwide face the challenge of massive population migration towards cities due to regional development imbalances. The influx of large populations into cities has resulted in overburdened urban infrastructure and the emergence of slums on the outskirts of cities [1, 2]. This not only exacerbates poverty but also threatens balanced development at both national and regional levels. The phenomenon of overpopulation in large cities is particularly prominent in many developing countries, severely constraining their sustainable development [3,4,5]. Therefore, guiding the workforce to stay in their local areas to avoid large-scale migration has become key to promoting balanced regional development, making it a core issue for many countries to urgently address.

China faces similar challenges. Since the reform and opening up, China has undergone rapid industrialization and urbanization, which has sharply conflicted with the traditional household registration (known in China as hukou) system, giving rise to a unique social group – workers with agricultural hukou (WAH). Holding rural hukou, they work in urban or non-agricultural sectors, creating a divergence between their occupation and identity [6]. As shown by the National Bureau of Statistics [7], this group is large and growing, with the total number of WAH nationwide reaching a staggering 297.53 million in 2023, an increase of 1.91 million over the previous year. The continuous growth of the WAH population has led to a rapid increase in the urban population, while simultaneously causing a shortage of young and middle-aged labour in rural areas. This trend not only adds to the burden on cities but also presents challenges to the development of rural areas.

To address this issue, the Chinese government has actively promoted local employment for WAH to stimulate economic and social development in their hometowns. This policy, known as “situ urbanization”, aims to prevent excessive population concentration in large cities by optimizing the allocation of urban and rural resources, thereby promoting balanced development among different social groups. Under this policy framework, WAH are divided into local workers with agricultural hukou (LWAH) and migrant workers with agricultural hukou (MWAH) based on their place of employment. Since 2013, the National Bureau of Statistics of China has published an annual Migrant Workers Monitoring Survey Report, providing detailed statistics on the number and trends of LWAH and MWAH. According to the report, in 2012, there were 99.25 million LWAH and 163.36 million MWAH. In 2023, there were be 120.95 million LWAH and 176.58 million MWAH. This represents a net increase in 11 years of 20.7 million LWAH and 13.22 million MWAH [7, 8]. Although MWAH still outnumber LWAH, the faster growth rate of LWAH reflects the success of the new urbanization strategy. This change raises an important question: Besides policy promotion, what other factors are encouraging more WAH to choose local employment?

WAH’s subjective life experiences, especially life satisfaction, may be a crucial factor influencing their decision-making. While local jobs may not be as economically attractive as those in large cities, staying in a familiar environment, free from the high pressures and adaptation challenges of city life, may enhance their overall life satisfaction. Based on this, the following research questions are posed: Are more WAH choosing local employment because they have higher life satisfaction? If so, what factors are contributing to the higher life satisfaction of LWAH in relatively disadvantaged material conditions?

By analysing panel data from the China Family Panel Studies (CFPS) from 2014 to 2020 and using a fixed-effects model, this study aims to reveal the significant differences in life satisfaction between LWAH and MWAH and the mechanisms behind them. The contribution of this study is reflected in the following two aspects: First, at the theoretical level, this study provides important empirical support for understanding the implementation of the situ urbanization policy of the rural migrant population in China and reveals the mechanism behind the change of direction of WAH migration, particularly extending the applicability of self-determination theory and social comparison theory within this context. By incorporating these theories into the study of life satisfaction among this group, the research offers new perspectives and analytical frameworks for future studies on population migration and urbanization, enriching the discussion on the interaction between individual psychological needs and social environments. Second, in practice, by analysing the psychological mechanism of the higher life satisfaction of LWAH compared with MWAH, the study explores the effective psychological path to promote the situ urbanization of China’s agricultural migrant population. The findings not only provide a solid foundation for policy-making to support situ urbanization but also offer valuable lessons for other countries facing challenges such as large-scale population inflows and the development of slums in urban peripheries. In particular, developing countries can draw on this experience to optimize regional labour allocation, alleviate population pressure in large cities, and promote coordinated regional development while addressing issues of overpopulation and poverty concentration.

Literature review and theoretical hypothesis

Life satisfaction is a key indicator for measuring an individual’s overall well-being and quality of life. Regarded as a judgement reflecting the overall quality of one’s life, life satisfaction demonstrates considerable stability [9]. However, there has been no direct comparative study on the life satisfaction of LWAH and MWAH within the academic community. Due to this lack of direct research, this study extends its literature review scope to encompass the overall life satisfaction of WAH.

This study employs self-determination theory and social comparison theory to deeply understand the differences in life satisfaction and influencing factors between LWAH and MWAH. On the one hand, self-determination theory highlights the importance of satisfying the three basic psychological needs of autonomy, competence, and relatedness for well-being and other positive psychological states [10, 11]. Autonomy refers to the freedom and voluntariness in decision-making, competence denotes the feeling of being capable and effective in actions, and relatedness reflects the sense of belonging, intimacy, and connection in daily interactions [10, 12]. The fulfilment of these needs directly impacts an individual’s quality of life and life satisfaction. On the other hand, social comparison involves the process and result of comparing one’s abilities, skills, and performances with others in a given dimension [13]. Individuals derive self-evaluation through such comparisons, and negative comparison information might lead to feelings of inferiority and loss of self-esteem [14]. This highlights the importance of higher social status for positive emotions. Considering that LWAH and MWAH are situated in different work environments and social networks, psychological needs and social comparisons may play different roles in these two groups, significantly affecting their life satisfaction. Therefore, this study will further synthesize relevant literature based on the introduction of self-determination theory and social comparison theory.

In the research on the life satisfaction of migrant workers, the conclusions of the existing literature are largely consistent. Due to disadvantages in employment, social support, and other aspects, the overall life satisfaction of WAH has remained low for a long time [15]. Particularly when compared to urban residents, WAH have been found to have lower life satisfaction [16]. These findings align with the general living conditions of MWAH. One possible explanation for this is that, on the one hand, as outsiders in urban areas, MWAH face integration barriers and lack a sense of belonging, achievement, and recognition [17], which significantly hinders the fulfilment of their basic psychological needs, thereby negatively affecting their life satisfaction. On the other hand, compared to urban employees, MWAH are disadvantaged in terms of social capital, career development, and income [18], which can lead to negative psychological outcomes in social comparisons, further impacting their life satisfaction.

In contrast to MWAH, the situation for LWAH is somewhat different. On the one hand, LWAH live and work in a familiar cultural and social environment, which makes it easier for their basic psychological needs to be met, and this satisfaction can effectively enhance their life satisfaction [19]. On the other hand, due to the relatively stable local living and working environment, LWAH tend to experience more positive outcomes in social comparisons, thereby significantly improving their life satisfaction. Therefore, the following hypothesis is proposed:

Hypothesis 1:

Compared to MWAH, LWAH have higher life satisfaction.

Based on the above analysis, the fulfilment of psychological needs and social comparison play a critical role in the difference in life satisfaction between LWAH and MWAH. However, the specific internal mechanisms through which these factors influence life satisfaction require further exploration. Existing research has demonstrated a significant positive correlation between perceived social status and life satisfaction [20]. Compared to MWAH, LWAH have more advantages in cultural adaptability, social environment, policy support, and social integration, which enhances their sense of personal control and autonomy, making it easier to meet their psychological needs and more likely to obtain positive social comparison outcomes. These advantages collectively improve the perceived social status of LWAH [21], which in turn positively influences their life satisfaction.

Additionally, the positive impact of job satisfaction on life satisfaction has been widely confirmed [22]. Since LWAH work in familiar cultural and social environments, their sense of autonomy, competence, and relatedness is strengthened, and the fulfilment of basic psychological needs in the workplace is typically associated with higher job satisfaction [23, 24]. At the same time, the positive feedback from social comparisons makes LWAH more likely to feel satisfied with their work [25]. Therefore, compared to MWAH, LWAH experience higher job satisfaction, which in turn leads to higher life satisfaction. In conclusion, the advantages LWAH gain from the fulfilment of psychological needs and positive social comparisons strengthen their perceived social status and job satisfaction, enabling them to maintain a higher level of life satisfaction. Therefore, the following hypotheses are proposed:

Hypothesis 2a:

Perceived social status plays a mechanistic role in the higher life satisfaction of LWAH.

Hypothesis 2b:

Job satisfaction plays a mechanistic role in the higher life satisfaction of LWAH.

Furthermore, existing research indicates significant individual differences in psychological needs and social comparisons [10, 26]. Therefore, this study will conduct a more in-depth exploration of the heterogeneity within LWAH and MWAH and uncover potential differences in life satisfaction. On the one hand, generational differences are a core aspect of heterogeneity within WAH. Research has already found age differences in the fulfilment of basic psychological needs and tendencies for social comparison [27,28,29]. However, for LWAH and MWAH, further analysis is required on generational differences in psychological needs and social comparisons, as well as more in-depth differences in life satisfaction. Compared to middle-aged and younger WAH, local work may negatively affect the environmental adaptability of older WAH, making it harder to meet their psychological needs. Additionally, due to the limitations in job opportunities [30], older WAH may struggle to maintain a competitive edge in social comparisons, which could lead to a decline in their life satisfaction. On the other hand, considering the differences in economic development levels across regions in China as well as individual work conditions, psychological needs and social comparisons may also vary by region and work circumstances. This could lead to differences in life satisfaction between LWAH and MWAH across different regions and under varying work conditions. In economically developed areas, LWAH tend to have more job opportunities [31], which helps maintain their advantage in social comparisons and improves their life satisfaction. As for differences in working conditions, previous research has shown that signing a labour contract has a positive effect on WAH life satisfaction [32]. In other words, WAH who sign a labour contract may perceive higher social status at work, thereby enjoying greater life satisfaction. Therefore, the following hypotheses are proposed:

Hypothesis 3a:

Compared to middle-aged and younger WAH, the life satisfaction of older LWAH is significantly lower than that of older MWAH.

Hypothesis 3b:

Compared to economically underdeveloped regions, in economically developed regions, the life satisfaction of LWAH is significantly higher than that of MWAH.

Hypothesis 3c:

Compared to those who have not signed labour contracts, in cases where labour contracts are signed, the life satisfaction of LWAH is significantly higher than that of MWAH.

Method

Data

The data used in this study comes from the China Family Panel Studies (CFPS), which is organized by the Institute of Social Science Survey at Peking University. The aim of CFPS is to systematically track the socioeconomic conditions and changes of Chinese residents over time. CFPS is a comprehensive national survey with wide coverage, and since its inception in 2010, the baseline survey has covered 25 provinces, municipalities, and autonomous regions across China. The survey follows the full sample every two years, eventually completing interviews with 14,960 households and 42,590 individuals. The CFPS data covers various aspects such as household economics, education, health, and population migration, and it is highly representative and timely.

This study selects four waves of data from CFPS between 2014 and 2020 for analysis. These four waves of data exhibit high completeness and can reflect the changes in the lives of WAH amidst China’s rapid social development and urbanization processes. The research focuses on WAH who hold agricultural hukou and are engaged in non-agricultural work, as this group’s unique position in urban–rural mobility makes the study of their life satisfaction particularly relevant. To ensure the accuracy and consistency of the data, this study utilizes Stata 17 for statistical analysis. The sample was carefully screened, removing missing values and illogical records. Additionally, only samples with complete data across all four waves were retained to form a balanced panel dataset, resulting in a final effective sample size of 1,976. The specific data screening process is shown in Fig. 1.

Fig. 1

Data filtering

Measures

Dependent variable

The dependent variable in this study is life satisfaction. Referring to the research by Zheng et al. [33], this variable is derived from the CFPS question, “How would you rate your satisfaction with your life?” Based on the respondents’ answers to their life satisfaction, values are assigned from 1 (very dissatisfied) to 5 (very satisfied), with higher scores indicating greater life satisfaction.

Independent variable

The study defines its subjects based on the CFPS questions on current hukou status and work nature, focusing on individuals with agricultural hukou who are engaged in non-agricultural work—that is, WAH. Additionally, based on the work location of the WAH, they are divided into LWAH and MWAH. Therefore, the independent variable in this study is whether the WAH are employed locally or out-of-town, represented by the dummy variable “work location”. In this categorization, LWAH are assigned a value of 1, while MWAH are assigned a value of 0.

Control variables

In light of the research question, the study selects age, gender, province, educational level, marital status, political identity, and medical history as personal objective characteristic variables. Self-rated health, happiness, trust in neighbours, trust in strangers, confidence in the future, and self-evaluation of income status in the local area are chosen as subjective variables. Work status, work hours, income, exercise habits, drinking habits, and smoking habits are selected as variables related to work and lifestyle habits.

Mediating variable

Considering the impact of social status and job satisfaction on individual life satisfaction [34], this study selects perceived social status and job satisfaction as mediating variables. These variables aim to analyse the mechanism by which local work affects the life satisfaction of WAH. The perceived social status variable is directly derived from the CFPS question, “How would you rate your social status in your locality?” Similarly, job satisfaction is obtained from the question, “How satisfied are you with this job?” Both are assigned values from 1 to 5.

Model selection

Two-way fixed-effects model

To explore the impact of local work on the life satisfaction of WAH, this study first uses a fixed-effects model for preliminary estimation. The model is set as follows:

$$\:{LS}_{it}={}_{1}{WL}_{it}+{\text{O}}_{it}\:+{S}_{it}\:+\:{WL}_{it}\:+{\:}_{i}\:+\:{}_{t}\:+\:{\epsilon\:}_{it}\:$$

(1)

where $\:{LS}_{it}$ represents the life satisfaction score of respondent i at time t, and $\:{WL}_{it}$ indicates whether respondent i is working locally at time t. $\:{\text{O}}_{it}\:$is a set of variables measuring personal objective characteristics, $\:{S}_{it}\:$ is a set of variables measuring personal subjective characteristics, and $\:{WL}_{it}\:$is a set of variables covering work characteristics and lifestyle habits. $\:{}_{i}\:$represents individual fixed effects,$\:\:{}_{t}$represents year fixed effects, and $\:{\epsilon\:}_{it}$ represents the random error term. $\:{}_{1}$is the coefficient to be estimated in this study, reflecting the magnitude and direction of the impact of local work on the life satisfaction of WAH.

Mediating effect model

To examine whether the difference in life satisfaction between LWAH and MWAH is due to their differences in perceived social status and job satisfaction, this study adopts the mediation effect test method proposed by Baron et al. [35]. Based on Eq. (1), Eqs. (2) and (3) are constructed:

$$\:{M}_{it}={\alpha\:}_{2}{WL}_{it}+{\text{O}}_{it}\:+{S}_{it}\:+\:{WL}_{it}\:+{\:}_{i}\:+\:{}_{t}\:+\:{\epsilon\:}_{it}$$

(2)

$$\:{LS}_{it}={\alpha\:}_{3}{WL}_{it}+\sum\:{\beta\:}_{3k}{M}_{it}+{\text{O}}_{it}\:+{S}_{it}\:+\:{WL}_{it}\:+{\:}_{i}\:+\:{}_{t}\:+\:{\epsilon\:}_{it}\:$$

(3)

where $\:{M}_{it}$ represents the mediating variable; the meanings of other variables are the same as in Eq. (1). The specific mediation effect test is divided into two steps: the first step is to test model (1). If $\:{\alpha\:}_{2}$ is significant, proceed to the second step; otherwise, there is no mediation effect. The second step is to test models (2) and (3). If both $\:{\alpha\:}_{3}$ and$\:\:{\beta\:}_{3k}$ are significant, a mediation effect exists.

Results

Descriptive statistics

Table 1 presents the descriptive statistical results of the sample data used in this study. The results show that the average life satisfaction of the sample is 3.821, which is moderately high. Regarding the independent variable, 80.5% of the WAH in the sample work locally. In terms of personal objective characteristics, the average age of the sample is around 36 years, with 59.8% being male and with a generally low level of education. Moreover, 82.4% of the sample are married, and most are not members of the Communist Party of China (CPC), with no major medical history in the past year. In terms of subjective characteristics, the sample reports a moderate level of self-rated health, high levels of happiness, trust in neighbours and strangers, and confidence in the future, but a relatively low evaluation of their income status. Regarding work and lifestyle habits, 92% of the sample are employed, with long working hours but not high income levels. Additionally, few in the sample have habits of exercising, smoking, or drinking.

Table 1 Variable definition and descriptive statistics

Benchmark regression

Table 2 reports the baseline regression results of the impact of work location on the life satisfaction of WAH, controlling for both individual and year fixed effects. Model 1 shows the estimated impact of local work on the life satisfaction of WAH, Model 2 is the estimation after controlling for personal objective characteristic variables, Model 3 further controls for both personal objective and subjective characteristic variables, and Model 4 additionally controls for work and lifestyle habit variables. The interpretation of the results is based on Model 4. It reveals that, after controlling for a series of other variables, LWAH have a life satisfaction score 0.107 units higher than MWAH, significant at the 5% level. This supports hypothesis 1.

This means that, compared to MWAH, LWAH have distinct advantages in terms of psychological needs and social comparisons, enabling them to achieve higher levels of life satisfaction.

Table 2 Benchmark regression results of work location and life satisfaction

Robustness test

The empirical results above indicate a significant positive impact of local work on the life satisfaction of WAH. To enhance the credibility and reliability of the research, this study first supplemented the missing values in the original panel data and, based on the baseline regression, employed four methods to further verify the differences in life satisfaction between LWAH and MWAH. The results of the robustness checks are presented in Table 3.

First, more control variables were added. New control variables included medical-related variables (such as medical insurance, medical treatment location, satisfaction with medical treatment location and conditions), social relationship variables (such as evaluation of popularity), and family-related variables (such as the number of family members and family dining frequency). The results are shown in Model 5. Second, the sample was expanded to include individuals with urban hukou. This is due to recent reforms in China’s hukou system, which eliminated the distinction between agricultural and non-agricultural hukou, unifying them as resident hukou. Considering that the resident hukou category likely includes a considerable number of migrants difficult to distinctly categorize, individuals with resident hukou were included in the study. The results are presented in Model 6. Third, the sample was narrowed down. Given there was some missing data in the 2014 and 2016 samples, a regression analysis was conducted using only the data from 2018 to 2020, as shown in Model 7. Fourth, unbalanced panel data was used. Since the sample size for the balanced panel was relatively small, the study further analysed unbalanced panel data, focusing on individuals with data from two or more survey waves. Based on the unbalanced panel data, the sample of MWAH consisted of 2,690 individuals, accounting for approximately 25% of the total sample. The relevant results are shown in Model 8.

From Models 5 to 8, it is evident that local work has a significant positive impact on the life satisfaction of WAH, further validating the results obtained from the baseline regression.

Table 3 Robustness test

Additionally, to control for potential individual biases that might affect the results, this study adopted the Propensity Score Matching (PSM) method, following the approach of Kim et al. [36]. The specific steps are as follows: First, individuals were matched based on their characteristics to ensure that LWAH and MWAH groups had similar features, thereby minimizing intergroup differences as much as possible. Then, regression analysis was conducted on the successfully matched samples to more accurately compare the differences in life satisfaction between LWAH and MWAH. Table 4 presents the results of the balance test after matching, showing that all covariates have bias values less than 10%, and the p-values are not significant, indicating that the differences between the two groups have been significantly reduced after matching. Table 5 shows the regression analysis results of the matched samples, revealing that, after controlling for a series of variables and individual and time fixed effects, local work significantly improves the life satisfaction of WAH at the 10% significance level compared to migrant employment.

Table 4 Balance test

Table 5 Regression results of samples after matching

Mechanism analysis

The empirical results above demonstrate that LWAH have higher life satisfaction compared to MWAH. To delve deeper into this phenomenon, this section further explores the internal mechanisms, specifically how local work enhances the life satisfaction of WAH. Table 6 presents an analysis of the mediating effects on the life satisfaction of LWAH, with Model 8 showing the regression results for the impact of work location on life satisfaction.

Table 6 Analysis of mediation effects

Moreover, on the one hand, Models 9 and 10 analyse the mediating effect of perceived social status. Model 9 estimates the impact of the independent variable on the mediating variable, perceived social status, while Model 10 includes both the independent and mediating variables. The results indicate that, first, work location has a positive coefficient on perceived social status, significant at the 10% level. This suggests that local work positively influences the perceived social status of WAH. Second, the inclusion of the mediating variable reveals that LWAH have significantly higher life satisfaction, suggesting that perceived social status plays a potential mediating role between work location (local or out-of-town) and life satisfaction of migrant workers with agricultural hukou. This confirms hypothesis 2a: the fulfilment of psychological needs and positive evaluation of social status lead to higher perceived social status among LWAH, which in turn positively affects their life satisfaction.

On the other hand, Models 11 and 12 analyse the mediating effect of job satisfaction. Model 11 estimates the impact of the independent variable on the mediating variable, job satisfaction, while Model 12 includes both variables. The results show that although job satisfaction is positively correlated with life satisfaction, the coefficient of work location on job satisfaction is negative and not significant. This indicates that job satisfaction is not the mediating mechanism for the higher life satisfaction of LWAH. Thus, hypothesis 2b is not supported. This suggests that due to disadvantages in income and working conditions, LWAH experience a negative impact on their job satisfaction.

Heterogeneity analysis

Considering the heterogeneity within the large social group of WAH, which results in varying effects of psychological needs and social comparison, the study further analyses how differences in life satisfaction between LWAH and MWAH vary across age, region, and work status. Table 7 reports the results of this heterogeneity analysis.

Table 7 Heterogeneity analysis

Regarding generational differences, the results indicate that local work decreases the life satisfaction of older WAH by 0.736 units, and this effect is significant at the 10% level. For younger and middle-aged WAH, local work has a positive but not significant impact on their life satisfaction. In terms of regional differences, based on the World Bank’s GDP per capita standard for developed countries, China’s 30 provinces were divided into economically developed and underdeveloped areas. The results show that for WAH in economically developed areas, local work significantly improves life satisfaction; however, this conclusion does not hold in economically underdeveloped areas. As for work condition differences, WAH were divided into two groups based on whether they had signed contracts. The results indicate that local work significantly enhances the life satisfaction of WAH who have signed contracts, whereas the positive effect on those without contracts is not significant.

Discussion

This study conducted an in-depth exploration of the life satisfaction of WAH. The analysis results show that, compared to MWAH, LWAH reported higher life satisfaction. Moreover, perceived social status played a positive mediating role in this relationship. Further analysis revealed that the differences in life satisfaction between LWAH and MWAH are influenced by multiple factors, including generational, regional, and work condition differences. These findings are reasonably explained within the framework of self-determination theory and social comparison theory.

First, compared to MWAH, LWAH benefit from advantages in psychological needs and social comparisons, which contribute to their higher life satisfaction. On the one hand, there are advantages in fulfilling basic psychological needs. Self-determination theory emphasizes the autonomy and self-regulation of individuals during motivational processes. LWAH, operating within familiar social environments, are able to make choices more autonomously and experience stronger feelings of belonging, intimacy, and connectedness [10, 12]. The fulfilment of basic psychological needs correlates positively with positive emotional indicators (such as sense of life meaning, life satisfaction, and self-esteem) [37], which in turn fosters positive outcomes in social comparisons. In contrast, MWAH working in relatively unfamiliar urban settings face a lack of belonging, achievement, and recognition, which may hinder their integration into urban life and thus affect their emotional state and life satisfaction [38]. On the other hand, there are advantages in the scope of social comparisons. Social comparison theory suggests that in the absence of objective evaluation standards, individuals tend to evaluate themselves through comparisons with others. These comparisons can be upward, lateral, or downward [39]. LWAH typically engage in lateral or downward comparisons within smaller towns, which helps reduce their perceived social stress and anxiety and, thus, increases their life satisfaction. Conversely, MWAH in large cities often engage in upward comparisons, which increases their perceived social pressure and may lead to more negative emotions and lower life satisfaction [40].

Second, perceived social status plays an important mediating role in the differences in life satisfaction between LWAH and MWAH. Perceived social status is a result of social comparison, as individuals assess their own social standing by comparing themselves to others [41]. Compared to MWAH, LWAH have certain advantages in terms of perceived social status. On the one hand, due to their familiarity with the local social environment and culture, LWAH tend to receive more positive feedback during social comparisons. On the other hand, the scope of social comparisons for LWAH is more limited, focusing mainly on groups within the same geographic area. These groups often share similar economic and social conditions, which positions LWAH more favourably in social comparisons, allowing them to form more positive perceptions of their social status. In contrast, MWAH, operating in unfamiliar environments with a wider and more diverse range of social comparison targets, tend to have fewer positive perceptions of their social status. From the perspective of self-determination theory, the enhancement of perceived social status satisfies individuals’ psychological needs for autonomy and competence [42]. Specifically, higher perceived social status strengthens LWAH’s self-recognition of their abilities and increases their sense of autonomy, thereby boosting their overall life satisfaction. In contrast, MWAH, who face challenges in receiving positive feedback through social comparison, tend to have lower perceived social status. This makes it more difficult for them to meet their psychological needs for autonomy and competence, which in turn lowers their life satisfaction [43]. It is also noteworthy that job satisfaction does not serve as a major factor influencing the life satisfaction of LWAH. One possible reason is that, compared to MWAH, LWAH are often at a relative disadvantage in terms of income and working conditions [44]. This makes it difficult for them to derive fulfilment from their jobs, both in terms of psychological needs and social comparison, resulting in generally lower job satisfaction. In this context, job satisfaction does not play a significant mediating role. However, improving the job satisfaction of LWAH may still contribute to enhancing their overall life satisfaction to some extent [45].

Lastly, the differences in psychological needs and social comparison lead to variations in life satisfaction between LWAH and MWAH across generational, regional, and work condition factors. Regarding generational differences, local work has a significantly negative impact on the life satisfaction of older WAH. This may be because, for older MWAH, their long-term experiences of living and working away from home help them adapt to new environments and integrate into local society [18], fulfilling their needs for belonging, intimacy, and connection. This suggests that the advantages of local work in terms of psychological needs are no longer as pronounced. However, the disadvantage in economic income still persists, causing older LWAH to lag in social comparison and, consequently, have lower life satisfaction [46].

In terms of regional differences, local work has a significant positive effect on the life satisfaction of WAH in economically developed areas. This is due to the relatively small regional economic gaps, higher levels of urbanization, and better infrastructure in these areas [47]. In such areas, local work offers WAH better wages, job opportunities, and public services while retaining the psychological and social comparison advantages. In contrast, in economically underdeveloped areas, LWAH may find it difficult to overcome the disadvantages of objective conditions through subjective factors such as psychological advantages.

Regarding work condition differences, local work significantly enhances the life satisfaction of WAH who have signed formal contracts. For WAH, signing a formal work contract implies higher wages and improved social security conditions [48]. In other words, although LWAH may face some disadvantages compared to MWAH, such as lower wage levels, the stability of contract-based work helps offset these disadvantages to some extent, providing greater fulfilment of psychological needs and more positive social comparison evaluations. By contrast, the effect of contract signing on MWAH is much smaller, as they may still face challenges in meeting psychological needs and achieving favourable social comparisons while adapting to new environments.

In the current context of slowing urbanization and aging of the agricultural worker population in China, how to improve the quality of life for those who choose to stay in or return to their hometowns to work has become an urgent issue. In this study, these workers, who work within their counties, are referred to as LWAH. They have a strong sense of belonging to the local area and are satisfied with their psychological needs and social comparisons. However, aside from these subjective factors, in recent years, the development of digital technology has brought more objective factors that significantly affect the quality of life of WAH. For example, existing research has found that digital finance has a positive impact on residents’ health, with particularly significant effects among populations with lower socioeconomic status [49]. This finding suggests that future research discussing differences in life satisfaction among WAH can further explore the role of emerging digital technologies and financial advancements in influencing their life satisfaction. For LWAH, under the national push for integrated urban–rural development and the equalization of public services, if both subjective and objective conditions are met to a certain extent, their life satisfaction is likely to improve further. This would not only enhance their willingness to stay in their hometowns for entrepreneurship or employment but it would also help narrow the urban–rural gap, ease population pressures on large cities, and provide strong support for rural revitalization.

Conclusions

This study utilized data from the CFPS from 2014 to 2020, focusing on WAH who worked within their registered hometowns prior to 2020. A fixed-effects model was employed to examine the differences in life satisfaction between LWAH and MWAH, as well as potential underlying mechanisms. The empirical findings indicate that (1) compared to MWAH, LWAH’s life satisfaction increased by 0.107 units, a significant change at the 5% level, under the dual positive influences of psychological needs and social comparison; (2) further analysis of mediating mechanisms revealed that LWAH possess a higher perceived social status, which further elevates their life satisfaction; and (3) heterogeneity analysis showed that local work significantly suppresses the life satisfaction of older WAH. In contrast, for WAH in economically developed areas and those with labour contracts, local work significantly enhances their life satisfaction.

Based on these results, we propose the following policy recommendations to improve the quality of life and social status of WAH. First, local employment environments should be optimized and infrastructure and public services improved in towns and rural areas. Considering the positive impact of local work on WAH’s life satisfaction, the government should not only focus on promoting local job opportunities to encourage more WAH to choose local work, and thus improve their life satisfaction, but also improve infrastructure to enhance their overall quality of life. This would ensure that their psychological needs and advantages in social comparison are better met.

Second, perceived social status should be enhanced and WAH’s sense of self-identity strengthened. Since perceived social status is a key factor influencing life satisfaction, it is recommended to boost WAH’s social status recognition through social campaigns and policy measures. For example, the government and media can promote the contributions WAH make to urban construction and economic development, increasing societal recognition of their labour value. Additionally, the government should implement policies to protect WAH’s labour rights, such as improving the social insurance system and working conditions, to enhance their social recognition and self-worth.

Third, there should be a focus on the needs of older WAH by providing targeted support measures. Given the potential negative impact of local work on the life satisfaction of older WAH, policymakers should offer more targeted support, especially in healthcare and retirement benefits. Specific measures could include providing more social welfare services for older WAH, such as community-based elderly care and medical subsidies, ensuring their stability in life, reducing economic and health pressures, and thus improving their life satisfaction.

Fourth, region-specific policies based on regional differences should be developed. The research shows that LWAH in economically developed areas have higher life satisfaction, so policies should be tailored to the economic conditions of different areas. In less developed areas, the government should increase investment in infrastructure and public services to improve WAH’s living environments and quality of life.

Fifth, labour contract enforcement and labour rights protections should be strengthened to improve working conditions. The results show that WAH with signed labour contracts report higher life satisfaction. Therefore, policies should reinforce the protection of WAH’s labour rights and encourage companies to strictly implement the labour contract system. The government can establish laws or supervisory mechanisms to ensure that WAH enjoy full labour protections, particularly in areas such as wages, rest time, and social insurance, thereby improving their life satisfaction.

The limitations of this study are as follows. First, the research employed a fixed-effects model to analyse the differences in life satisfaction between LWAH and MWAH. Although this method controls for certain unobservable individual characteristics, the study did not address potential endogeneity issues, which could affect the accuracy and reliability of the results.

Second, the study used data from the China Family Panel Studies (CFPS) covering the years 2014 to 2020. While CFPS is a broad and significant data source, the span and scope of the data limit the study’s ability to capture the latest trends, especially in a rapidly changing socioeconomic environment, where the most recent changes might not be fully reflected in the analysis results.

Third, although the CFPS data is somewhat representative, issues related to sample selection and response rates may introduce some degree of selection bias. Moreover, the study primarily focuses on a specific group, Chinese agricultural workers, which may limit the generalizability of its conclusions, particularly when applying these findings to other countries or cultural contexts, which should be done with caution.

Finally, with the rapid development of digital technology, emerging factors such as technology and digital finance may also influence the life satisfaction of WAH. Due to the lack of specific variables related to these factors in the CFPS data, this study was unable to explore this issue in depth. Future research could consider incorporating this domain into the analysis to more comprehensively assess the impact of technological advancement and digital finance on WAH’s life satisfaction. These limitations provide directions for future research, such as adopting more advanced statistical methods to address endogeneity issues, expanding the data sources and time frames, and exploring the potential impact of technological changes on life satisfaction in greater depth.