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Kuznets curve in happiness: A cross-country exploration

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  • Ram, Rati

Abstract

In the context of the recent emergence of enormous research and policy interest in the many dimensions of happiness, this paper explores for the first time a Kuznets-type relation between average happiness and happiness-inequality in a large cross-country setting. Three different data sets and several types of specifications are used. The study suggests three main points. First, in all cases there is a clear indication of an inverted-U relation in which happiness-inequality first increases with mean happiness, reaches a peak, and then declines. Moreover, the estimated turning-point occurs at a fairly "late" stage, and 35% to 40% of the countries lie in the increasing-inequality segment. Second, a possible policy implication is that there may be need to address accentuation of happiness-inequality at early stages of increase in average happiness. Third, the estimates indicate that the predominant sentiment in the literature toward a negative relation between mean happiness and happiness-inequality is probably based on oversimplified linear models.

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  • Ram, Rati, 2017. "Kuznets curve in happiness: A cross-country exploration," Economic Modelling, Elsevier, vol. 66(C), pages 272-278.
    • Handle: RePEc:eee:ecmode:v:66:y:2017:i:c:p:272-278
    DOI: 10.1016/j.econmod.2017.06.006
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    4. Wen Xiang & Jianzhong Gao, 2023. "From Agricultural Green Production to Farmers’ Happiness: A Case Study of Kiwi Growers in China," IJERPH, MDPI, vol. 20(4), pages 1-25, February.
    5. Georges Ngnouwal Eloundou & Blaise Ondoua Beyene & Marius Messoh Lonte, 2023. "In pursuit of Happiness in developing countries: does the diffusion of ICT matter?," Economics Bulletin, AccessEcon, vol. 43(4), pages 1730-1740.
    6. Lee, Chien-Chiang & Chen, Mei-Ping, 2020. "Happiness sentiments and the prediction of cross-border country exchange-traded fund returns," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    7. Avom, Desire & Yselle Malah, Flora, 2022. "Social media and happiness nexus in the millennial generation," Telecommunications Policy, Elsevier, vol. 46(8).

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