With the intensification of social competition, the rate of return to education is gradually decreasing. This leads to a reduction in the indirect effect of education on happiness. This article uses the bivariate ordered Probit model under the educational field theory to investigate the impact of higher education innovation on social class and residents’ happiness. The results show that the innovation and reform of higher education will have a certain impact on residents’ happiness. The improvement of education level can significantly improve the individual's subjective well-being, and there are significant urban-rural differences. This shows that education reform and innovation are imperative.