A Note on Inequality Aversion Across Countries, Using Two New Measures
Studies using the Gini Index as a measure of income inequality have consistently found a positive and significant effect of the Gini on both happiness and life satisfaction. Two new measures used here – the ratio of persons in the lowest income decile relative to the number in the highest, and the ratio of the number in the lowest social class relative to the number in the highest, in a given country – as developed from the World Values Survey data, are shown here to have a negative and significant effect on both happiness and life satisfaction. This effect holds overall across countries, and for individuals within most income and class categories.
|Date of creation:||May 2011|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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, 09.
- Hopkins, Ed, 2008.
"Inequality, Happiness and Relative Concerns: What Actually is their Relationship?,"
SIRE Discussion Papers
2008-01, Scottish Institute for Research in Economics (SIRE).
- Ed Hopkins, 2008. "Inequality, happiness and relative concerns: What actually is their relationship?," Journal of Economic Inequality, Springer, vol. 6(4), pages 351-372, December.
- Ed Hopkins, 2008. "Inequality, Happiness and Relative Concerns: What Actually is their Relationship?," Levine's Bibliography 122247000000001896, UCLA Department of Economics.
- Ed Hopkins, 2008. "Inequality, Happiness and Relative Concerns: What Actually is their Relationship?," ESE Discussion Papers 180, Edinburgh School of Economics, University of Edinburgh.
- Edward Wolff & Ajit Zacharias, 2007. "The Impact of Wealth Inequality on Economic Well-Being," Challenge, M.E. Sharpe, Inc., vol. 50(4), pages 65-87, August.
- Claudia Senik, 2005. "Income distribution and well-being: what can we learn from subjective data?," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 43-63, 02.
- Conchita D’Ambrosio & Joachim Frick, 2007. "Income Satisfaction and Relative Deprivation: An Empirical Link," Social Indicators Research, Springer, vol. 81(3), pages 497-519, May.
- Luttmer, Erzo F. P., 2004.
"Neighbors as Negatives: Relative Earnings and Well-Being,"
Working Paper Series
rwp04-029, Harvard University, John F. Kennedy School of Government.
- Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 963-1002.
- Erzo F.P. Luttmer, 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," NBER Working Papers 10667, National Bureau of Economic Research, Inc.
- repec:ebl:ecbull:v:4:y:2008:i:24:p:1-10 is not listed on IDEAS
- Russell Smyth & Xiaolei Qian, 2008. "Inequality and Happiness in Urban China," Economics Bulletin, AccessEcon, vol. 4(24), pages 1-10.
- Hilke Brockmann & Jan Delhey & Christian Welzel & Hao Yuan, 2009. "The China Puzzle: Falling Happiness in a Rising Economy," Journal of Happiness Studies, Springer, vol. 10(4), pages 387-405, August.
- Carol Graham & Andrew Felton, 2006. "Inequality and happiness: Insights from Latin America," Journal of Economic Inequality, Springer, vol. 4(1), pages 107-122, April.
- McBride, Michael, 2001. "Relative-income effects on subjective well-being in the cross-section," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 251-278, July.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5734. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.