Psychological security, financial market participation, and residents' subjective well-being: An empirical analysis based on CFPS data

Based on CFPS data, this study delves into the complex relationship between psychological security, financial market participation (especially formal financial participation), and residents' happiness. The results reveal that psychological security has a significant positive impact on residents' happiness, highlighting the crucial role of mental health in enhancing the quality of life for residents. Simultaneously, financial market participation, particularly in formal financial markets, is found to further enhance the positive effect of psychological security on happiness, indicating that financial market participation is not only about economic gains but also profoundly influences residents' psychological state. Additionally, the study discovers that internet use mediates the relationship between psychological security and happiness, and increasing the frequency of internet use significantly boosts residents' happiness. This research also analyzes the heterogeneous effects of human capital, age, and gender in this context.