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Regional income inequality and happiness: Evidence from Japan

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  • Oshio, Takashi
  • 小塩, 隆士
  • オシオ, タカシ
  • Kobayashi, Miki
  • 小林, 美樹
  • コバヤシ, ミキ

Abstract

We investigated how regional income inequality is associated with the individual assessment of happiness based on micro data from nationwide surveys in Japan. Our multilevel analysis using logit and ordered logit models confirmed that individuals who live in areas of high inequality tend to report themselves as less happy, even after controlling for various individual and regional factors. Notably, the fact that happiness depends on not only income but also income inequality indicates the importance of income redistribution for individual well-being. We also find that the association between regional inequality and happiness is not uniform across the different levels of perceived happiness. Moreover, the sensitivities of happiness to regional inequality differ substantially by key individual attributes such as gender, marital status, level of education, occupational status, and political views. Among others, an important finding for social policy is that those of unstable occupational status and those with a lower level of education are more sensitive to regional inequality. Given the fact that these people tend to be less happy than the others, this result points to the risk that regional inequality additionally reduces the well-being of those under unfavorable socioeconomic conditions.

Suggested Citation

  • Oshio, Takashi & 小塩, 隆士 & オシオ, タカシ & Kobayashi, Miki & 小林, 美樹 & コバヤシ, ミキ, 2009. "Regional income inequality and happiness: Evidence from Japan," PIE/CIS Discussion Paper 460, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:piecis:460
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/17753/pie_dp460.pdf
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    References listed on IDEAS

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    1. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    2. Michael Förster & Marco Mira d'Ercole, 2005. "Income Distribution and Poverty in OECD Countries in the Second Half of the 1990s," OECD Social, Employment and Migration Working Papers 22, OECD Publishing.
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    Cited by:

    1. Tim Tiefenbach & Florian Kohlbacher, 2015. "Happiness in Japan in Times of Upheaval: Empirical Evidence from the National Survey on Lifestyle Preferences," Journal of Happiness Studies, Springer, vol. 16(2), pages 333-366, April.
    2. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.

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    Keywords

    Happiness; income inequality; multilevel analysis; Japan;
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