Inequality and Happiness

Claudia Biancotti and Giovanni D'Alessio

No 45-2007, AICCON Working Papers from Associazione Italiana per la Cultura della Cooperazione e del Non Profit

Abstract: This paper examines the relationship between inequality and happiness through the lens of heterogeneous values, beliefs and inclinations. Drawing upon opinion data from the European Social Survey for twenty-three countries, we found that individual views on a wide range of themes can be effectively summarized by two orthogonal dimensions: moderation and inclusiveness. The former is defined as a tendency to take mild stands on issues rather than extreme ones; the latter is defined as the degree of support for a social model that grants equal rights and opportunities to everyone who willingly subscribes to a shared set of rules, regardless of background and circumstances. These traits matter when it comes to how inequality affects subjective well-being; specifically, those who are either more moderate or more inclusive than their average compatriot tend to dislike inequality. With reference to moderation, inequality aversion can be read in terms of a desire for stability: people who are reluctant to take strong stands probably dislike conflict, tension and unrest, which normally accompany inequalities. With ref- erence to inclusiveness, the main element at play is likely to be distress accruing to a perception of unfairness.

Keywords: Happiness; inequality; heterogeneity (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-09-18
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Citations: View citations in EconPapers (4)

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Working Paper: Inequality and Happiness (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:aiccon:2007_045

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