On the relation between income inequality and happiness: do fairness perceptions matter?
In this paper, we revisit the association between happiness and inequality. We argue that the perceived fairness of the income generation process affects this association. Building on a two-period model of individual life-time utility maximization, we predict that persons with higher perceived fairn...
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| Weitere Verfasser: | , , , |
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| Dokumenttyp: | Buch/Monographie Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Heidelberg
Universitätsbibliothek der Universität Heidelberg
January 2010
Heidelberg University of Heidelberg, Department of Economics January 2010 |
| Schriftenreihe: | Discussion paper series / Universität Heidelberg, Department of Economics
no. 495 |
| In: |
Discussion paper series (no. 495)
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| Schlagworte: | |
| Online-Zugang: | Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:16-opus-102765 Resolving-System, Volltext: http://hdl.handle.net/10419/127310 Verlag, Volltext: http://www.ub.uni-heidelberg.de/archiv/10276 
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| Verfasserangaben: | Christian Bjørnskov, Axel Dreher, Justina A. V. Fischer and Jan Schnellenbach |
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| 245 | 0 | 0 | |a On the relation between income inequality and happiness |b do fairness perceptions matter? |c Christian Bjørnskov, Axel Dreher, Justina A. V. Fischer and Jan Schnellenbach |
| 264 | 1 | |a Heidelberg |b Universitätsbibliothek der Universität Heidelberg |c January 2010 | |
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| 490 | 1 | |a Discussion paper series / Universität Heidelberg, Department of Economics |v no. 495 | |
| 500 | |a Online publiziert: 2010 | ||
| 520 | |a In this paper, we revisit the association between happiness and inequality. We argue that the perceived fairness of the income generation process affects this association. Building on a two-period model of individual life-time utility maximization, we predict that persons with higher perceived fairness will experience higher levels of life-time utility and are less in favor of income redistribution. In societies with a high level of actual social mobility, income inequality is perceived more positively with increased expected fairness. The opposite is expected for countries with low actual social mobility, due to an increasing relevance of a disappointment effect resulting from unsuccessful individual investments. Using the World Values Survey data and a broad set of fairness measures, we find strong support for the negative (positive) association between fairness perceptions and the demand for more equal incomes (subjective well-being). We also find strong empirical support for the disappointment effect in low social mobility countries. In contrast, the results for high-mobility countries turn out to be ambiguous. | ||
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