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Top incomes and human well-being around the world

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  • Richard V. Burkhauser
  • Jan-Emmanuel De Neve
  • Nattavudh Powdthavee

Abstract

The share of income held by the top 1 percent in many countries around the world has been rising persistently over the last 30 years. But we continue to know little about how the rising top income shares affect human well-being. This study combines the latest data to examine the relationship between top income share and different dimensions of subjective well-being. We find top income shares to be significantly correlated with lower life evaluation and higher levels of negative emotional well-being, but not positive emotional well-being. The results are robust to household income, individual's socio-economic status, and macroeconomic environment controls.

Suggested Citation

  • Richard V. Burkhauser & Jan-Emmanuel De Neve & Nattavudh Powdthavee, 2016. "Top incomes and human well-being around the world," CEP Discussion Papers dp1400, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1400
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Top incomes and human well-being around the world
      by maximorossi in NEP-LTV blog on 2016-06-08 19:10:50
    2. Top Incomes and Human Well-Being Around the World
      by maximorossi in NEP-LTV blog on 2016-02-29 19:57:46
    3. Top Incomes and Human Well-being Around the World
      by maximorossi in NEP-LTV blog on 2016-02-19 01:03:53

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    Cited by:

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    3. Bussolo,Maurizio & Lebrand,Mathilde Sylvie Maria & Torre,Ivan, 2020. "Feeling Poor, Feeling Rich, or Feeling Middle-Class : An Empirical Investigation," Policy Research Working Paper Series 9456, The World Bank.
    4. Felix FitzRoy & Jim Jin & Michael Nolan, 2023. "Higher tax and less work: reverse “Keep up with the Joneses” and rising inequality," Journal of Economics, Springer, vol. 139(3), pages 177-190, August.
    5. Clément S. Bellet, 2017. "The paradox of the Joneses: superstar houses and mortgage frenzy in suburban America," CEP Discussion Papers dp1462, Centre for Economic Performance, LSE.
    6. repec:hal:spmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    7. FitzRoy, Felix & Jin, Jim & Nolan, Michael A., 2019. "Higher Tax and Less Work: An Optimal Response to Relative Income Concern," IZA Discussion Papers 12468, Institute of Labor Economics (IZA).
    8. Bellet, Clement, 2017. "The paradox of the Joneses: superstar houses andmortgage frenzy in suburban America," LSE Research Online Documents on Economics 69044, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Top income; life evaluation; well-being; income inequality; World Top Income database; Gallup World Poll;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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