Publication:
Life Satisfaction and Income Inequality

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dc.contributor.authorVerme, Paolo
dc.date.accessioned2012-03-19T18:00:39Z
dc.date.available2012-03-19T18:00:39Z
dc.date.issued2011-02-01
dc.description.abstractDo people care about income inequality and does income inequality affect subjective well-being? Welfare theories can predict either a positive or a negative impact of income inequality on subjective well-being and empirical research has found evidence on a positive, negative or non significant relation. This paper attempts to determine some of the possible causes of such empirical heterogeneity. Using a very large sample of world citizens, the author tests the consistency of income inequality in predicting life satisfaction. The analysis finds that income inequality has a negative and significant effect on life satisfaction. This result is robust to changes in regressors and estimation choices and also persists across different income groups and across different types of countries. However, this relation is easily obscured or reversed by multicollinearity generated by the use of country and year fixed effects. This is particularly true if the number of data points for inequality is small, which is a common feature of cross-country or longitudinal studies.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110223133910
dc.identifier.doi10.1596/1813-9450-5574
dc.identifier.urihttps://hdl.handle.net/10986/3341
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5574
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBENCHMARK
dc.subjectCAP
dc.subjectCOUNTRY DUMMIES
dc.subjectCOUNTRY LEVEL
dc.subjectCROSS-COUNTRY DATA
dc.subjectCROSS-COUNTRY STUDIES
dc.subjectCROSS-COUNTRY STUDY
dc.subjectDATA SET
dc.subjectDATA SETS
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISPOSABLE INCOME
dc.subjectDISPOSABLE INCOMES
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INEQUALITY
dc.subjectECONOMIC OUTLOOK
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC REVIEW
dc.subjectECONOMICS RESEARCH
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL FINDINGS
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL MODELS
dc.subjectEMPIRICAL RESEARCH
dc.subjectEMPIRICAL RESULTS
dc.subjectEMPIRICAL STUDIES
dc.subjectEQUATIONS
dc.subjectEXCHANGE RATES
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGINI COEFFICIENT
dc.subjectGINI INDEX
dc.subjectGROSS INCOMES
dc.subjectHETEROSKEDASTICITY
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SURVEYS
dc.subjectIMPACT OF INEQUALITY
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME DISTRIBUTIONS
dc.subjectINCOME EFFECT
dc.subjectINCOME GROUPS
dc.subjectINCOME INEQUALITY
dc.subjectINCOME MEASURES
dc.subjectINCOME SCALE
dc.subjectINCOME TAXES
dc.subjectINCOME VARIABLES
dc.subjectINCOMES
dc.subjectINCREASED INEQUALITY
dc.subjectINCREASING INCOME INEQUALITY
dc.subjectINDIVIDUAL COUNTRIES
dc.subjectINDIVIDUAL INCOMES
dc.subjectINEQUALITY AVERSION
dc.subjectINEQUALITY AVERSION PARAMETER
dc.subjectINEQUALITY DATA
dc.subjectINEQUALITY INDEPENDENT
dc.subjectINEQUALITY MEASURE
dc.subjectINEQUALITY MEASURES
dc.subjectINEQUALITY VARIABLES
dc.subjectLABOUR MARKET
dc.subjectLEARNING
dc.subjectLIFE EXPECTANCY
dc.subjectLONGITUDINAL DATA
dc.subjectMEAN INCOME
dc.subjectMEDIAN INCOME
dc.subjectNATIONAL SURVEYS
dc.subjectNEGATIVE IMPACT
dc.subjectNEGATIVE SIGN
dc.subjectNET EFFECT
dc.subjectPAYROLL TAXES
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOOR
dc.subjectPOOR COUNTRIES
dc.subjectPOOR PEOPLE
dc.subjectPOSITIVE CORRELATION
dc.subjectPOSITIVE EFFECT
dc.subjectPOVERTY LINE
dc.subjectPOVERTY REDUCTION
dc.subjectPOWER PARITY
dc.subjectPSU
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC TRANSFERS
dc.subjectPURCHASING POWER
dc.subjectQUESTIONNAIRES
dc.subjectREGIONAL LEVEL
dc.subjectRELATIVE INCOME
dc.subjectRELATIVE POSITION
dc.subjectSAMPLE SIZE
dc.subjectSIGNIFICANCE LEVEL
dc.subjectSIGNIFICANT CORRELATION
dc.subjectSIGNIFICANT EFFECT
dc.subjectSOCIAL CAPITAL
dc.subjectSOCIAL INDICATORS
dc.subjectSOCIAL JUSTICE
dc.subjectSOCIAL MOBILITY
dc.subjectUNEMPLOYMENT
dc.subjectWEALTH
dc.subjectWELL-BEING
dc.titleLife Satisfaction and Income Inequalityen
dspace.entity.typePublication
okr.crossref.titleLife satisfaction and income inequality
okr.date.disclosure2011-02-01
okr.date.doiregistration2025-04-10T11:33:15.146594Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110223133910
okr.globalpracticePoverty
okr.guid861581468164985352
okr.identifier.doi10.1596/1813-9450-5574
okr.identifier.externaldocumentum000158349_20110223133910
okr.identifier.internaldocumentum13820564
okr.identifier.reportWPS5574
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/02/23/000158349_20110223133910/Rendered/PDF/WPS5574.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicPoverty Reduction::Services & Transfers to Poor
okr.topicPoverty Reduction::Inequality
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
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