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Does a Rising Tide Lift All the Boats? Explaining the National Inequality of Happiness

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  • Tomi Ovaska
  • Ryo Takashima

Abstract

Many recent studies in economics have uncovered the economic and socio-economic factors that are most related to differences among nations in citizens' self-reported levels of well-being (SWB). However, these cross-country studies have generally not taken into account the fact that around the SWB national average, a considerable spread of scores exists within nations. In an extreme case, a country may be in the midst of a major social upheaval, with a large group of dispossessed and disadvantaged individuals, yet this fact is completely hidden by the arithmetical average. Using cross-country data with diverse economic and socio-economic characteristics and the latest available dataset on well-being, we uncover the factors that appear to be the most highly correlated with the inequality of well-being within nations. We find the inequalities in individual incomes and quality of health, and the level of institutional qualities to be most important in explaining the inequalities of well-being.

Suggested Citation

  • Tomi Ovaska & Ryo Takashima, 2010. "Does a Rising Tide Lift All the Boats? Explaining the National Inequality of Happiness," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(1), pages 205-224.
    • Handle: RePEc:mes:jeciss:v:44:y:2010:i:1:p:205-224
    DOI: 10.2753/JEI0021-3624440110
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    Cited by:

    1. Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2014. "The drivers of happiness inequality: suggestions for promoting social cohesion," Oxford Economic Papers, Oxford University Press, vol. 66(2), pages 419-442.
    2. Ram, Rati, 2017. "Kuznets curve in happiness: A cross-country exploration," Economic Modelling, Elsevier, vol. 66(C), pages 272-278.
    3. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2012. "The Great Happiness Moderation," Working Papers halshs-00707290, HAL.
    4. Kathleen M. Sheehan & Andrew T. Young, 2015. "It'S A Small World After All: Internet Access And Institutional Quality," Contemporary Economic Policy, Western Economic Association International, vol. 33(4), pages 649-667, October.

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