In this paper, we investigate the formative mechanism of the Easterlin paradox in China using 2010 Chinese General Social Survey (CGSS) data. By establishing a multifactor, multi-level dynamic framework, we unveil the formative mechanism of the Easterlin paradox. The impact of multiple factors on subjective well-being and the influence of micro-level individual factors conditional on macro-economic development were analyzed. We find that with economic growth, on the one hand, material needs

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... aded to enjoyment needs, and the return to well-being from material conditions decreased. On the other hand, the intensity of social inequality triggered relative deprivation, offsetting the return from economic growth. Therefore, subjective well-being stagnated, instead of increasing with economic growth.