What Affects Happiness Inequality? Evidence from Japan

Niimi, Yoko

doi:10.1007/s10902-016-9835-9

Cited by 25 publications

(21 citation statements)

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“…The effect of increasing gap between poor and reference group income on life satisfaction Gini has a significant effect by 0.032 units in second period (2010–2014). This result is consistent with the findings of Becchetti et al (2014) and Niimi (2018). Becchetti et al (2014) find a positive effect for relatively poor on happiness dispersion and negative and significant effect for relatively rich on happiness inequality.…”

Section: Empirical Analysissupporting

confidence: 94%

“…Clark et al (2014) use an index of ordinal variation as a measure for ordinal variables for robustness check and obtain almost similar results. These results are in parallel with the view of Van Praag (1991) that individuals tend to translate their verbal evaluations regarding their overall quality of life to a numerical scale when they answer to the subjective questions (Niimi, 2018).…”

Section: Data and Empirical Methodologysupporting

confidence: 83%

“…Becchetti et al (2014) find a positive effect for relatively poor on happiness dispersion and negative and significant effect for relatively rich on happiness inequality. Similarly, Niimi (2018) finds that both being rich and poor relative to being average are positively related with happiness inequality. As observed in previous literature and descriptive analysis, income inequality significantly influences life satisfaction inequality.…”

Section: Empirical Analysismentioning

confidence: 97%

“…These trends in India are somewhat higher compared to other countries. Becchetti et al (2014) find a slight decrease (2.5 per cent) in average happiness and around 8 per cent increase in variance of happiness and 7 per cent increase in Gini index of happiness in Germany between 1992 and 2007, while Niimi (2018) finds a downward trend in happiness inequality (standard deviation) by 7.2 per cent in Japan between 2003 and 2013. The rank income position has only slightly improved between the periods, from 0.40 to 0.42.…”

Section: Empirical Analysismentioning

confidence: 97%

“…They find a positive impact for being relatively poor and no impact for being relatively rich on happiness inequality. Niimi (2018) estimates a recentered influence function (RIF) regression and finds that household income has a significant negative impact on happiness inequality and hence relative standing is also important in determining inequality in happiness. Moreover, the fear of losing a job and life after retirement also matters for happiness inequality in Japan.…”

Section: Income Inequality and Subjective Well-being Inequality Relatmentioning

confidence: 99%

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The Effect of Income Inequality on Happiness Inequality in India: A Recentered Influence Function Regression Estimation and Life Satisfaction Inequality Decomposition

Lakshmanasamy

Maya

2020

Indian Journal of Human Development

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It is now an accepted stylised fact that increase in happiness level in any country is not commensurate with growth in income, a puzzle known as Easterlin Paradox. This paper analyses the income-happiness relationship in India and tries to explain the flat happiness response to income change in terms of rising income inequality. Income growth propels inequality and so also inequality in well-being. Empirically the effects of income inequality, absolute income, relative income, rank position and social capital indices are analysed using World Value Survey data for 12 states of India over 24 years from 1990 to 2014. As the variation in the 10-point scale measure of life satisfaction level is narrow, an recentered influence function (RIF) regression of variance and Gini of life satisfaction are estimated. The life satisfaction inequality is decomposed into composition and coefficients effects using Blinder–Oaxaca (B–O) decomposition method. The estimated RIF coefficients reveal significant effects on life satisfaction inequality of various income measures and social capital indices. The B–O decomposition shows that the functional relationship between material aspirations and life satisfaction, contribute significantly to rising life satisfaction inequality relative to changes over time in happiness influencing factors. Reducing income inequality and improving trust, sociability, health, education and employment over time and space could reduce life satisfaction inequality and improve happiness level in India.

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Section: Empirical Analysissupporting

confidence: 94%

Section: Data and Empirical Methodologysupporting

confidence: 83%