Subjective Well-Being Analysis of Income Inequality: Evidence for the Industrialized and Emerging Economies

• Main Author: Beja, Edsel L, Jr
• Format: text
• Published: Archīum Ateneo 2013
• Subjects: Subjective well-being; Inequality; Industrialized economies; Emerging economies; Economics; Industrial Organization
• Online Access: https://archium.ateneo.edu/economics-faculty-pubs/119; https://link.springer.com/article/10.1007/s11482-013-9243-9
• Institution: Ateneo De Manila University

Subjective well-being analysis of income inequality finds that very high levels of objective inequality are considered “bad” in both the industrialized and emerging economies covered in the study. People from the industrialized economies appear to be more sensitive to mild levels of objective inequality compared to those from the emerging economies. Subjective inequality, on the other hand, is not considered “bad” in the same industrialized and emerging economies covered in the study. People from both areas appear to tolerate subjective inequality provided it is the outcome of an impartial environment founded upon rules observed by the majority. There, however, remains the need to help people recognize the importance of addressing inequalities in order for them to demand a more equitable distribution of income in society.