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Income inequality and happiness
Shigehiro Oishi1, Selin Kesebir, Ed Diener
1Department of Psychology, University of Virginia, P.O. Box 400400, Charlottesville, VA 22904-4400, USA. soishi@virginia.edu
Psychological Science
|August 16, 2011
Summary
Americans reported higher happiness during years with less national income inequality. This effect was linked to increased trust and perceived fairness, particularly for lower-income individuals.
Area of Science:
- Social Psychology
- Sociology
- Economics
Background:
- National income inequality has been a growing concern.
- Understanding the relationship between economic factors and subjective well-being is crucial.
Purpose of the Study:
- To investigate the association between national income inequality and average happiness levels in the United States.
- To explore the mediating roles of perceived fairness and general trust in this relationship.
- To examine how this association differs across income groups.
Main Methods:
- Analysis of General Social Survey (GSS) data spanning from 1972 to 2008.
- Statistical modeling to assess the correlation between income inequality and happiness.
- Examination of mediating variables including trust and fairness perceptions.
Main Results:
- A significant inverse relationship was found: higher income inequality correlated with lower average happiness.
- Perceived fairness and general trust significantly mediated this inverse relationship.
- The negative impact of income inequality on happiness was pronounced among lower-income respondents, driven by diminished trust and perceived fairness, not solely by income level.
Conclusions:
- Reducing national income inequality may enhance overall societal happiness.
- Policies aimed at fostering trust and fairness could mitigate the negative psychological effects of income inequality.
- Addressing the impact of income inequality is particularly important for the well-being of lower-income populations.
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