IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/81235.html
   My bibliography  Save this paper

Economic Inequality and Happiness: A quantitative study among the elderly in Rural Vietnam

Author

Listed:
  • Quang Tran, Tuyen
  • Viet Nguyen, Cuong
  • Van Vu, Huong

Abstract

By combining data from the 2011 Vietnam National Aging Survey and the 2011 Rural, Agricultural and Fishery Census, we examined whether expenditure inequality has any effect on happiness or life satisfaction among the elderly in rural Vietnam. We find that individuals who live in the communes with high inequality tend to self-report as being less happy, even after controlling for various individual and household attributes. The results are robust to the choice of inequality measures and the specification of econometric models. We also find that older rural people who are farmers or poor are more sensitive to inequality. Given that these people tend to be less happy than others, the result shows the risk that inequality further lowers their subjective well-being. The result supports the view that rural Vietnam is a less mobile society.

Suggested Citation

  • Quang Tran, Tuyen & Viet Nguyen, Cuong & Van Vu, Huong, 2015. "Economic Inequality and Happiness: A quantitative study among the elderly in Rural Vietnam," MPRA Paper 81235, University Library of Munich, Germany, revised 14 Oct 2016.
    • Handle: RePEc:pra:mprapa:81235
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/81235/1/MPRA_paper_81235.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paolo Verme, 2011. "Life Satisfaction And Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 111-127, March.
    2. Kingdon, Geeta Gandhi & Knight, John, 2007. "Community, comparisons and subjective well-being in a divided society," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 69-90, September.
    3. Jiang, Shiqing & Lu, Ming & Sato, Hiroshi, 2012. "Identity, Inequality, and Happiness: Evidence from Urban China," World Development, Elsevier, vol. 40(6), pages 1190-1200.
    4. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December.
    5. Jeremy K. Nguyen & Christopher M. Fleming & Jen-Je Su, 2015. "Does Income Inequality Make Us Less Happy?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(1), pages 15-32, March.
    6. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    7. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
    8. Christopher T. Dawes & James H. Fowler & Tim Johnson & Richard McElreath & Oleg Smirnov, 2007. "Egalitarian motives in humans," Nature, Nature, vol. 446(7137), pages 794-796, April.
    9. Claudia Senik, 2009. "Income Distribution and Subjective Happiness: A Survey," OECD Social, Employment and Migration Working Papers 96, OECD Publishing.
    10. Neal Krause, 2003. "Religious Meaning and Subjective Well-Being in Late Life," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 58(3), pages 160-170.
    11. Russell Smyth & Xiaolei Qian, 2008. "Inequality and Happiness in Urban China," Economics Bulletin, AccessEcon, vol. 4(24), pages 1-10.
    12. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2099-2123, August.
    13. Krzysztof Zagorski & Mariah Evans & Jonathan Kelley & Katarzyna Piotrowska, 2014. "Does National Income Inequality Affect Individuals’ Quality of Life in Europe? Inequality, Happiness, Finances, and Health," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 1089-1110, July.
    14. Krzysztof Zagorski & Mariah Evans & Jonathan Kelley & Katarzyna Piotrowska, 2014. "Erratum to: Does National Income Inequality Affect Individuals’ Quality of Life in Europe? Inequality, Happiness, Finances, and Health," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 939-939, September.
    15. 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.
    16. Ada Ferrer-i-Carbonell & Xavier Ramos, 2014. "Inequality And Happiness," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 1016-1027, December.
    17. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    18. Albert O. Hirschman & Michael Rothschild, 1973. "The Changing Tolerance for Income Inequality in the Course of Economic DevelopmentWith A Mathematical Appendix," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(4), pages 544-566.
    19. Max Haller & Markus Hadler, 2006. "How Social Relations and Structures can Produce Happiness and Unhappiness: An International Comparative Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 75(2), pages 169-216, January.
    20. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    21. Carol Graham & Andrew Felton, 2006. "Inequality and happiness: Insights from Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 107-122, April.
    22. Runt Veenhoven, 2002. "Why Social Policy Needs Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 58(1), pages 33-46, June.
    23. Knesebeck, Olaf von dem & Lüschen, Günther & Cockerham, William C. & Siegrist, Johannes, 2003. "Socioeconomic status and health among the aged in the United States and Germany: A comparative cross-sectional study," Social Science & Medicine, Elsevier, vol. 57(9), pages 1643-1652, November.
    24. Peng Wang & Jay Pan & Zhehui Luo, 2015. "The Impact of Income Inequality on Individual Happiness: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 413-435, April.
    25. Morawetz, David, 1977. "Income Distribution and Self-Rated Happiness: Some Empirical Evidence," Economic Journal, Royal Economic Society, vol. 87(347), pages 511-522, September.
    26. Takashi Oshio & Kayo Nozaki & Miki Kobayashi, 2011. "Relative Income and Happiness in Asia: Evidence from Nationwide Surveys in China, Japan, and Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(3), pages 351-367, December.
    27. Cheah, Yong Kang & Tang, Chor Foon, 2013. "The Socio-Demographic Determinants Of Self-Rated Happiness: The Case Of Penang, Malaysia," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 54(1), pages 1-16, June.
    28. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
    29. Fumio Ohtake & Jun Tomioka, 2004. "Who Supports Redistribution?," The Japanese Economic Review, Japanese Economic Association, vol. 55(4), pages 333-354, December.
    30. Pfau, Wade Donald & Giang, Thanh Long, 2009. "Remittances, Living Arrangements, and the Welfare of the Elderly," MPRA Paper 19121, University Library of Munich, Germany.
    31. Eggers, Andrew & Gaddy, Clifford & Graham, Carol, 2006. "Well-being and unemployment in Russia in the 1990s: Can society's suffering be individuals' solace?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 209-242, April.
    32. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    33. Brown, Philip H. & Tierney, Brian, 2009. "Religion and subjective well-being among the elderly in China," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 310-319, March.
    34. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    35. Lanjouw, Peter & Marra, Marleen & Nguyen, Cuong, 2013. "Vietnam's evolving poverty map : patterns and implications for policy," Policy Research Working Paper Series 6355, The World Bank.
    36. 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.
    37. Schwarze, Johannes & Harpfer, Marco, 2007. "Are people inequality averse, and do they prefer redistribution by the state?: Evidence from German longitudinal data on life satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 233-249, April.
    38. repec:ebl:ecbull:v:4:y:2008:i:24:p:1-10 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tuyen Quang Tran & Cuong Viet Nguyen & Huong Vu, 2018. "Does Economic Inequality Affect the Quality of Life of Older People in Rural Vietnam?," Journal of Happiness Studies, Springer, vol. 19(3), pages 781-799, March.
    2. Tuyen Quang Tran & Thanh Quy Nguyen & Huong Vu & Tinh Thanh Doan, 2017. "Religiosity and Subjective Well-Being Among Old People: Evidence from a Transitional Country," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(4), pages 947-962, December.
    3. Quang Tran, Tuyen & Quy Nguyen, Thanh & Vu Van, Huong & Thanh Doan, Tinh, 2015. "Religiosity and life satisfaction among old people: Evidence from a transitional country," MPRA Paper 81360, University Library of Munich, Germany, revised 10 Jun 2015.
    4. Peng Wang & Jay Pan & Zhehui Luo, 2015. "The Impact of Income Inequality on Individual Happiness: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 413-435, April.
    5. Adalgiso Amendola & Roberto Dell’Anno & Lavinia Parisi, 2019. "Happiness and inequality in European countries: is it a matter of peer group comparisons?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 473-508, July.
    6. Zhang, Quanda & Awaworyi Churchill, Sefa, 2020. "Income inequality and subjective wellbeing: Panel data evidence from China," China Economic Review, Elsevier, vol. 60(C).
    7. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    8. Martin Schröder, 2018. "Income Inequality and Life Satisfaction: Unrelated Between Countries, Associated Within Countries Over Time," Journal of Happiness Studies, Springer, vol. 19(4), pages 1021-1043, April.
    9. Tuyen Quang Tran & Huong Vu, 2018. "A microeconometric analysis of housing and life satisfaction among the Vietnamese elderly," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(2), pages 849-867, March.
    10. Woo Chang Kang & Jae Seung Lee & BK Song, 2020. "Envy and Pride: How Economic Inequality Deepens Happiness Inequality in South Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 617-637, July.
    11. Long Yang & Haiyang Lu & Meng Li, 2023. "Multidimensional Inequality and Subjective Well-Being in China: A Generalized Ordered Logit Model Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 1021-1052, February.
    12. 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.
    13. Teresa María García Muñoz & Juliette Milgram Baleix & Omar Odeh Odeh, 2022. "System Justification Beliefs and Life Satisfaction. The role of inequality aversion and support for redistribution," ThE Papers 22/15, Department of Economic Theory and Economic History of the University of Granada..
    14. Teresa Maria García-Muñoz & Juliette Milgram-Baleix & Omar Odeh-Odeh, 2019. "Inequality and Life Satisfaction in Low- and Middle-Income Countries: The Role of Opportunity," Societies, MDPI, vol. 9(2), pages 1-25, May.
    15. Elena Bárcena-Martín & Cortés Aguilar Alexandra & Ana I. Moro Egido, 2013. "The role of proximity and social comparisons on subjective well-being," ThE Papers 13/10, Department of Economic Theory and Economic History of the University of Granada..
    16. T. Tavor & L. D. Gonen & M. Weber & U. Spiegel, 2018. "The Effects of Income Levels and Income Inequalities on Happiness," Journal of Happiness Studies, Springer, vol. 19(7), pages 2115-2137, October.
    17. Ary Júnior, 2022. "Does income inequality change the relationship between environmental attitudes and subjective well-being? Evidence for 27 European countries," Working Papers REM 2022/0229, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    18. 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.
    19. Powdthavee, Nattavudh & Burkhauser, Richard V. & De Neve, Jan-Emmanuel, 2017. "Top incomes and human well-being: Evidence from the Gallup World Poll," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 246-257.
    20. Jiawen Huang & Yitong Fang, 2021. "Income Inequality, Neighbourhood Social Capital and Subjective Well-Being in China: Exploration of a Moderating Effect," IJERPH, MDPI, vol. 18(13), pages 1-18, June.

    More about this item

    Keywords

    Elderly; Expenditure inequality; Social mobility; Subjective well-being; Rural Vietnam;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:81235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.