Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147841
Authors: 
Ifcher, John
Zarghamee, Homa
Graham, Carol Lee
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10155
Abstract: 
U.S. income inequality has risen dramatically in recent decades. Researchers consistently find that greater income inequality measured at the state or national level is associated with diminished subjective well-being (SWB) in the U.S. We conduct the first multi-scale analysis (i.e., at the ZIP-code, MSA, and state levels) of the inequality-SWB relationship using SWB data from the U.S. Gallup Healthways Well-Being Index and income inequality data from the American Community Survey. We use the rich set of well-being measures afforded by the dataset (evaluative, positive- and negative-affective hedonic, and health measures) to examine the consistency of the relationship. We find that the relationship is both scale-dependent and measure-dependent: income inequality is SWB-diminishing in large regions for all measures, SWB-diminishing in small regions for negative-affective hedonic measures, and SWB-improving in small regions for most other measures. Lastly, we find that taking all regions together, the net relationship between income inequality and SWB is negative.
Subjects: 
subjective well-being
income inequality
happiness
distribution of income
health
scale-dependence
measure-dependence
JEL: 
D3
I14
D6
Document Type: 
Working Paper

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