IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Ingreso y desigualdad: ¿Cómo afectan a la felicidad en América Latina?

  • Mariana Gerstenblüth

    ()

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Natalia Melgar

    ()

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Máximo Rossi

    ()

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Latin America is known as the most unequal region in the world. However, the effect of income inequality on people’s welfare is still an open question. This paper assesses the relationship between income distribution and welfare by considering the levels of happiness reported by people. The main contribution of this paper is the examination of not only the direct effect of economic performance on happiness, but also the indirect macroeconomic effects through the subjective income scale. Our database comes from the 2008 Latino-barometer survey and we estimate probit models. Findings indicate that while poverty, income per capita and the human development index have only a significant direct impact on individual happiness, income distribution play an indirect role. In particular, we find that even when it plays non significant role, it matters through the subjective income level. The results show that richer people tend to be happier, however, the interaction term between the self-placement in the income scale and inequality is negatively related to happiness. Hence, individuals with higher income levels will be happier in countries where inequality is lower.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.fcs.edu.uy/archivos/0910.pdf
Download Restriction: no

Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0910.

as
in new window

Length: 21 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:ude:wpaper:0910
Contact details of provider: Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:0910. 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: (Irene Musio)

or (Héctor Pastori)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.