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How Do Europeans Evaluate Income Distributions? An Assessment Based On Happiness Surveys

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  • Udo Ebert
  • Heinz Welsch

Abstract

The purpose of this paper is to measure the evaluation of income inequality by European citizens. Starting from the concept of a social welfare function defined on income distributions the paper estimates the degree and nature of inequality aversion of Europeans. It uses subjective well‐being (SWB) as an empirical measure of welfare and estimates how SWB is related to average income and measures of income inequality (from an appropriate class). The estimated relationship is used to determine those inequality measures which qualify as proper representations of people's inequality aversion.

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  • Udo Ebert & Heinz Welsch, 2009. "How Do Europeans Evaluate Income Distributions? An Assessment Based On Happiness Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 803-819, September.
    • Handle: RePEc:bla:revinw:v:55:y:2009:i:3:p:803-819
    DOI: 10.1111/j.1475-4991.2009.00347.x
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    Cited by:

    1. Vijaya Krishnan, 2015. "Development of a Multidimensional Living Conditions Index (LCI)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 455-481, January.
    2. Aistė Dirzytė & Ona Gražina Rakauskienė & Vaida Servetkienė, 2016. "Household income and satisfaction with life: cognitive – emotional impact paradox," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(2), pages 198-210, December.
    3. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    4. Shoko Yamane & Hiroyasu Yoneda & Yoshiro Tsutsui, 2020. "Is Homo Economicus An Ideal to be Pursued? Using US and Japan Survey Data," Asian Economic Journal, East Asian Economic Association, vol. 34(4), pages 357-378, December.
    5. Heinz Welsch & Jan Kuehling, 2017. "Divided We Stand: Immigration Attitudes, Identity, and Subjective Well-Being," Working Papers V-401-17, University of Oldenburg, Department of Economics, revised Aug 2017.
    6. Jensen, Søren & Pedersen, Peder J., 2020. "Satisfaction with Life, Happiness, and Inequality – a Pseudo-Panel Study," IZA Discussion Papers 12972, Institute of Labor Economics (IZA).
    7. Oshio, Takashi & Urakawa, Kunio, 2013. "The association between perceived income inequality and subjective well-being: Evidence from a social survey in Japan," CIS Discussion paper series 579, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    8. Takashi Oshio & Miki Kobayashi, 2011. "Area-Level Income Inequality and Individual Happiness: Evidence from Japan," Journal of Happiness Studies, Springer, vol. 12(4), pages 633-649, August.
    9. Qiu Cheng & Kinglun Ngok, 2023. "Does the Dibao Program Improve Citizens’ Life Satisfaction in China? Perceptions of Pathways of Poverty Attribution and Income Inequality," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(2), pages 975-995, April.
    10. Heinz Welsch & Philipp Bierman & Jan Kühling, 2021. "Immigration Attitudes and Subjective Well-Being: A Matter of Identity?," Journal of Happiness Studies, Springer, vol. 22(4), pages 1563-1581, April.
    11. Takashi Oshio & Kunio Urakawa, 2014. "The Association Between Perceived Income Inequality and Subjective Well-being: Evidence from a Social Survey in Japan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(3), pages 755-770, May.
    12. Laura Ravazzini & Florian Chávez-Juárez, 2018. "Which Inequality Makes People Dissatisfied with Their Lives? Evidence of the Link Between Life Satisfaction and Inequalities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 1119-1143, June.
    13. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.
    14. Nedić, Vladimir & Despotović, Danijela & Cvetanović, Slobodan & Djukić, Tadija & Petrović, Dragan, 2020. "Institutional reforms for economic growth in the Western Balkan countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 933-952.
    15. Jiawen Huang, 2019. "Income Inequality, Distributive Justice Beliefs, and Happiness in China: Evidence from a Nationwide Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 83-105, February.
    16. Macunovich, Diane J., 2011. "A Note on Inequality Aversion Across Countries, Using Two New Measures," IZA Discussion Papers 5734, Institute of Labor Economics (IZA).

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