Income inequality and subjective well-being: a systematic review and meta-analysis

Abstract

BackgroundReducing income inequality is one possible approach to boost subjective well-being (SWB). Nevertheless, previous studies have reported positive, null and negative associations between income inequality and SWB.ObjectivesThis study reports the first systematic review and meta-analysis of the relationship between income inequality and SWB, and seeks to understand the heterogeneity in the literature.MethodsThis systematic review was conducted according to guidance (PRISMA and Cochrane Handbook) and searches (between January 1980 and October 2017) were carried out using Web of Science, Medline, Embase and PsycINFO databases.ResultsThirty-nine studies were included in the review, but poor data reporting meant that only 24 studies were included in the meta-analysis. The narrative analysis of 39 studies found negative, positive and null associations between income inequality and SWB. The meta-analysis confirmed these findings. The overall association between income inequality and SWB was almost zero and not statistically significant (pooled r = − 0.01, 95% CI − 0.08 to 0.06; Q = 563.10, I 2 = 95.74%, p < 0.001), suggesting no association between income inequality and SWB. Subgroup analyses showed that the association between income inequality and SWB was moderated by the country economic development (i.e. developed countries: r = − 0.06, 95% CI −0.10 to −0.02 versus developing countries: r = 0.16, 95% CI 0.09–0.23). The association between income inequality and SWB was not influenced by: (a) the measure used to assess SWB, (b) geographic region, or (c) the way in which income inequality was operationalised.ConclusionsThe association between income inequality and SWB is weak, complex and moderated by the country economic development.Electronic supplementary materialThe online version of this article (doi:10.1007/s11136-017-1719-x) contains supplementary material, which is available to authorized users.

Patterns of Trust and Subjective Well-Being Across Europe: New Insights from Repeated Cross-Sectional Analyses Based on the European Social Survey 2002–2016

“…In line with previous studies (e.g. Ngamaba et al 2018), we found no effect of income inequality on SWB. Nevertheless, previous research showed that income inequality has a negative effect on life satisfaction inequality as well as on social trust (Graafland and Lous 2019), which implies that reducing income inequality can be a desirable goal after all (see also Deeming and Jones 2015: 277).…”

“…Income inequality on the other hand, measured by the Gini coefficient, is not related to SWB. This is in accordance to previous literature (Di Tella et al 2001;Lopes et al 2014;Ngamaba et al 2018).…”

Income inequality and subjective wellbeing: Panel data evidence from China

“…A recent systematic review on the inequality-wellbeing relationship (Ngamaba, Panagioti, & Armitage, 2018) argues that the inconsistent or inconclusive findings in the literature can be explained by the fact that the strength and direction of the inequality-wellbeing relationship is mediated by several other factors. Thus, Ngamaba, et al (2018) emphasise the importance of examining the factors through which inequality influences wellbeing. For instance, social capital and trust is a channel of influence that has received much attention in the literature.…”

For a ‘sociology as a team sport’

“…These are often associated in the current literature. In fact, the link between subjective well‐being and material prosperity is a topic of controversy between economists and other experts of the topic (see Ngamaba, Panagioti and Armitage for a comprehensive review; on this topic, see also Hall and Lamont ). Nor do I embrace a focus on individual grit.…”