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On the relation between income inequality and happiness: Do fairness perceptions matter?

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Standard

On the relation between income inequality and happiness : Do fairness perceptions matter? / Bjørnskov, Christian; Dreher, Axel; Fischer, Justina AV; Schnellenbach, Jan.

Munich : University Library of Munich, 2009.

Research output: Working paperResearch

Harvard

Bjørnskov, C, Dreher, A, Fischer, JAV & Schnellenbach, J 2009 'On the relation between income inequality and happiness: Do fairness perceptions matter?' University Library of Munich, Munich.

APA

Bjørnskov, C., Dreher, A., Fischer, J. AV., & Schnellenbach, J. (2009). On the relation between income inequality and happiness: Do fairness perceptions matter? Munich: University Library of Munich.

CBE

Bjørnskov C, Dreher A, Fischer JAV, Schnellenbach J. 2009. On the relation between income inequality and happiness: Do fairness perceptions matter?. Munich: University Library of Munich.

MLA

Vancouver

Bjørnskov C, Dreher A, Fischer JAV, Schnellenbach J. On the relation between income inequality and happiness: Do fairness perceptions matter? Munich: University Library of Munich. 2009.

Author

Bjørnskov, Christian ; Dreher, Axel ; Fischer, Justina AV ; Schnellenbach, Jan. / On the relation between income inequality and happiness : Do fairness perceptions matter?. Munich : University Library of Munich, 2009.

Bibtex

@techreport{3051dba0f00411de8a20000ea68e967b,
title = "On the relation between income inequality and happiness: Do fairness perceptions matter?",
abstract = "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.",
keywords = "Happiness, Life satisfaction;, Subjective well-being, Inequality, Income distribution, Redistribution, Political ideology, Justice, Fairness, World Values Survey",
author = "Christian Bj{\o}rnskov and Axel Dreher and Fischer, {Justina AV} and Jan Schnellenbach",
year = "2009",
language = "English",
publisher = "University Library of Munich",
address = "Germany",
type = "WorkingPaper",
institution = "University Library of Munich",

}

RIS

TY - UNPB

T1 - On the relation between income inequality and happiness

T2 - Do fairness perceptions matter?

AU - Bjørnskov, Christian

AU - Dreher, Axel

AU - Fischer, Justina AV

AU - Schnellenbach, Jan

PY - 2009

Y1 - 2009

N2 - 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.

AB - 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.

KW - Happiness

KW - Life satisfaction;

KW - Subjective well-being

KW - Inequality

KW - Income distribution

KW - Redistribution

KW - Political ideology

KW - Justice

KW - Fairness

KW - World Values Survey

M3 - Working paper

BT - On the relation between income inequality and happiness

PB - University Library of Munich

CY - Munich

ER -