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Age-specific income inequality and happiness over the life cycle

Author

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  • d'Albis, Hippolyte
  • Mayaux, Damien
  • Senik, Claudia

Abstract

One of the main puzzles uncovered by the happiness literature is the U-shaped relationship between age and self-declared happiness, with a mid-life nadir, around 50-55. In this paper, we show that mid-life is also the moment when within-age income inequality is at its most. We also show that greater within-age income inequality comes with lower life satisfaction. Moreover, this negative impact is stronger for those whose income is below the median level in their age-group. Hence, relative income concerns seem to be a factor of the trough in the age-happiness curve.

Suggested Citation

  • d'Albis, Hippolyte & Mayaux, Damien & Senik, Claudia, 2023. "Age-specific income inequality and happiness over the life cycle," CEPREMAP Working Papers (Docweb) 2309, CEPREMAP.
    • Handle: RePEc:cpm:docweb:2309
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    File URL: http://www.cepremap.fr/depot/docweb/docweb2309.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Life satisfaction; life cycle; age-specific income inequality; I31; H24;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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