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Does income inequality impact individual happiness? Evidence from Canada

TitleDoes income inequality impact individual happiness? Evidence from Canada
Year of Publication2018
AuthorsLatif, E.
JournalInternational Journal of Applied Economics
Volume15
Pages42 - 79
Keywordscanada, happiness, income inequality
Abstract

Using panel data from the Canadian National Population Health Survey (1994-2009), this study examined the impact of income equality measured by the Gini coefficient on individual happiness. The results from the ordered probit method and the individual fixed effects method suggest that the contemporaneous Gini coefficient has a significant negative impact on individual happiness. To check the robustness of these results, the study utilized a number of measures of income inequality, including the decile ratio, coefficient of variation, log mean deviation, and Theil index. All of the measures show that contemporaneous income inequality has a significant negative effect on individual happiness. The study also finds that lagged income inequalities have a negative, but insignificant impact on individual happiness.

URLhttp://www2.southeastern.edu/orgs/ijae/index_files/Page295.htm
Document URLhttp://www2.southeastern.edu/orgs/ijae/index_files/IJAE%20MARCH%202018%20LATIF%20APRIL-8-2018.pdf