Inequality of Happiness in the U.S.: 1972-2010
It is well accepted that a country's GDP may not fully reflect its level of well‐being. In recent years, happiness has emerged as an alternative indicator of well‐being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distri...
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| Published in | The Review of income and wealth Vol. 59; no. 3; pp. 393 - 415 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Oxford
Blackwell Publishing Ltd
01.09.2013
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| Subjects | |
| Online Access | Get full text |
| ISSN | 0034-6586 1475-4991 |
| DOI | 10.1111/j.1475-4991.2012.00527.x |
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| Abstract | It is well accepted that a country's GDP may not fully reflect its level of well‐being. In recent years, happiness has emerged as an alternative indicator of well‐being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distribution of happiness is also a salient aspect in any evaluation of inequality. There has been a growing interest in the distribution of happiness, although the ordinal nature of the data makes the use of standard inequality measures problematic. Our paper contributes to the literature by exploring the distributions for the U.S. from 1972 to 2010. Based on new methods developed for ordinal data, we are able to overcome the problems associated with ordinality and obtain unambiguous rankings of happiness distributions. We also compute the level of happiness inequality using existing measures based on median centred approaches. Further, we decompose the median based inequality measures of happiness by gender, race, and region. |
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| AbstractList | It is well accepted that a country's GDP may not fully reflect its level of well-being. In recent years, happiness has emerged as an alternative indicator of well-being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distribution of happiness is also a salient aspect in any evaluation of inequality. There has been a growing interest in the distribution of happiness, although the ordinal nature of the data makes the use of standard inequality measures problematic. Our paper contributes to the literature by exploring the distributions for the US from 1972 to 2010. Based on new methods developed for ordinal data, we are able to overcome the problems associated with ordinality and obtain unambiguous rankings of happiness distributions. We also compute the level of happiness inequality using existing measures based on median centred approaches. Further, we decompose the median based inequality measures of happiness by gender, race, and region. [PUBLICATION ABSTRACT] It is well accepted that a country's GDP may not fully reflect its level of well-being. In recent years, happiness has emerged as an alternative indicator of well-being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distribution of happiness is also a salient aspect in any evaluation of inequality. There has been a growing interest in the distribution of happiness, although the ordinal nature of the data makes the use of standard inequality measures problematic. Our paper contributes to the literature by exploring the distributions for the U.S. from 1972 to 2010. Based on new methods developed for ordinal data, we are able to overcome the problems associated with ordinality and obtain unambiguous rankings of happiness distributions. We also compute the level of happiness inequality using existing measures based on median centred approaches. Further, we decompose the median based inequality measures of happiness by gender, race, and region. Reprinted by permission of International Association for Research in Income and Wealth It is well accepted that a country's GDP may not fully reflect its level of well-being. In recent years, happiness has emerged as an alternative indicator of well-being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distribution of happiness is also a salient aspect in any evaluation of inequality. There has been a growing interest in the distribution of happiness, although the ordinal nature of the data makes the use of standard inequality measures problematic. Our paper contributes to the literature by exploring the distributions for the U.S. from 1972 to 2010. Based on new methods developed for ordinal data, we are able to overcome the problems associated with ordinality and obtain unambiguous rankings of happiness distributions. We also compute the level of happiness inequality using existing measures based on median centred approaches. Further, we decompose the median based inequality measures of happiness by gender, race, and region. Adapted from the source document. It is well accepted that a country's GDP may not fully reflect its level of well‐being. In recent years, happiness has emerged as an alternative indicator of well‐being, and research has mainly focused on determining the level of happiness. While it is important to look at the level, the distribution of happiness is also a salient aspect in any evaluation of inequality. There has been a growing interest in the distribution of happiness, although the ordinal nature of the data makes the use of standard inequality measures problematic. Our paper contributes to the literature by exploring the distributions for the U.S. from 1972 to 2010. Based on new methods developed for ordinal data, we are able to overcome the problems associated with ordinality and obtain unambiguous rankings of happiness distributions. We also compute the level of happiness inequality using existing measures based on median centred approaches. Further, we decompose the median based inequality measures of happiness by gender, race, and region. |
| Author | Foster, James Dutta, Indranil |
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| References | Oswald, A., "Happiness and Economic Performance," Economic Journal, 107, 1815-1831, 1997. Abul Naga, R. and T. Yalcin, "Inequality Measurement for Ordered Response Health Data," Journal of Health Economics, 27, 1614-1625, 2008. Meade, J. E., The Just Economy, Principles of Political Economy, Volume 4, George Allen and Unwin, London, 1976. Madden, D., "Impact of an Economic Boom on the Level and Distribution of Subjective Well-Being: Ireland 1994-2001," Journal of Happiness Studies, 12, 667-679, 2011. Allison, R. A. and J. Foster, "Measuring Health Inequality Using Qualitative Data," Journal of Health Economics, 23, 505-524, 2004. Kalmijn, W. and L. R. Arends, "Measures in Inequality: Application to Happiness in Nations," Social Indicators Research, 99, 147-162, 2010. Goldsmith, W. W. and E. J. Blakley, Separate Societies: Poverty and Inequality in U.S. Cities, Temple University Press, Philadelphia, PA, 2010. Madden, D., "Ordinal and Cardinal Measures of Health Inequality: An Empirical Comparison," Health Economics, 19, 243-250, 2010. van Praag, B. M. S., "Ordinal and Cardinal Utility: An Integration of the Two Dimensions in the Welfare Concept," Journal of Econometrics, 50, 69-89, 1991. Layard, R., "Measuring Subjective Wellbeing," Science, 327, 534-535, 2010. Sen, A., Standard of Living, Oxford University Press, Oxford, 1987. Graham, C. and A. Felton, "Inequality and Happiness: Insights from Latin America," Journal of Economic Inequality, 4, 107-122, 2006. Clark, A. E., "Job Satisfaction and Gender: Why are Women So Happy at Work?" Labour Economics, 4, 341-372, 1997. Layard, R., Happiness: Lessons From a New Science, Penguin, London, 2011. Veenhoven, R., "Return of Inequality in Modern Society? Test by Dispersion of Life Satisfaction Across Time and Nations," Journal of Happiness Studies, 6, 457-487, 2005. Sen, A., On Economic Inequality, Oxford University Press, Oxford, 1973. Stevenson, B. and J. Wolfers, "Happiness Inequality in the United States," Journal of Legal Studies, 37, S33-79, 2008. Foster, J. and E. Ok, "Lorenz Dominance and Variance of Logarithms," Econometrica, 67, 901-907, 1999. Ott, J. C., "Level and Inequality of Happiness in Nations: Does Greater Happiness of a Greater Number imply Greater Inequality in Happiness?" Journal of Happiness Studies, 6, 397-420, 2005. Ng, Y.-K., "Happiness Surveys: Some Comparability Issues and an Exploratory Survey Based on Just Perceivable Increments," Social Indicators Research, 38, 1-27, 1996. Sen, A., The Idea of Justice, Penguin, London, 2009. Di Tella, R., R. MacCulloch, and A. Oswald, "The Macroeconomics of Happiness," Review of Economics and Statistics, 85, 809-827, 2003. Sen, A., Inequality Reexamined, Oxford University Press, Oxford, 1994. van Praag, B. M. S. and A. Ferrer-i-Carbonell, Happiness Quantified: A Satisfaction Calculus Approach, Oxford University Press, Oxford, 2004. Alesina, A., R. Di Tella, and R. MacCulloch, "Inequality and Happiness: Are Europeans and Americans Different?" Journal of Public Economics, 88, 2009-2042, 2004. Kalmijn, W. and R. Veenhoven, "Measuring Inequality of Happiness in Nations: In Search of Proper Statistics," Journal of Happiness Studies, 6, 357-396, 2005. Ovaska, T. and R. Takashima, "Does a Rising Tide Lift All the Boats? Explaining the National Inequality of Happiness," Journal of Economic Issues, 44, 205-223, 2010. 2004; 88 2010; 99 2010; 327 2011 2010; 19 2010 2004; 23 1991; 50 2009 1976 1999; 67 2008; 37 1973 1994 2006; 4 2011; 12 2004 1996; 38 1997; 4 2010; 44 1997; 107 1990 2008; 27 1987 2005; 6 2003; 85 |
| References_xml | – reference: van Praag, B. M. S. and A. Ferrer-i-Carbonell, Happiness Quantified: A Satisfaction Calculus Approach, Oxford University Press, Oxford, 2004. – reference: Meade, J. E., The Just Economy, Principles of Political Economy, Volume 4, George Allen and Unwin, London, 1976. – reference: Oswald, A., "Happiness and Economic Performance," Economic Journal, 107, 1815-1831, 1997. – reference: Allison, R. A. and J. Foster, "Measuring Health Inequality Using Qualitative Data," Journal of Health Economics, 23, 505-524, 2004. – reference: Sen, A., Inequality Reexamined, Oxford University Press, Oxford, 1994. – reference: Graham, C. and A. Felton, "Inequality and Happiness: Insights from Latin America," Journal of Economic Inequality, 4, 107-122, 2006. – reference: Kalmijn, W. and R. Veenhoven, "Measuring Inequality of Happiness in Nations: In Search of Proper Statistics," Journal of Happiness Studies, 6, 357-396, 2005. – reference: Ovaska, T. and R. Takashima, "Does a Rising Tide Lift All the Boats? Explaining the National Inequality of Happiness," Journal of Economic Issues, 44, 205-223, 2010. – reference: Sen, A., On Economic Inequality, Oxford University Press, Oxford, 1973. – reference: Madden, D., "Ordinal and Cardinal Measures of Health Inequality: An Empirical Comparison," Health Economics, 19, 243-250, 2010. – reference: Ott, J. C., "Level and Inequality of Happiness in Nations: Does Greater Happiness of a Greater Number imply Greater Inequality in Happiness?" Journal of Happiness Studies, 6, 397-420, 2005. – reference: Alesina, A., R. Di Tella, and R. MacCulloch, "Inequality and Happiness: Are Europeans and Americans Different?" Journal of Public Economics, 88, 2009-2042, 2004. – reference: Stevenson, B. and J. Wolfers, "Happiness Inequality in the United States," Journal of Legal Studies, 37, S33-79, 2008. – reference: Veenhoven, R., "Return of Inequality in Modern Society? Test by Dispersion of Life Satisfaction Across Time and Nations," Journal of Happiness Studies, 6, 457-487, 2005. – reference: Clark, A. E., "Job Satisfaction and Gender: Why are Women So Happy at Work?" Labour Economics, 4, 341-372, 1997. – reference: Sen, A., Standard of Living, Oxford University Press, Oxford, 1987. – reference: van Praag, B. M. S., "Ordinal and Cardinal Utility: An Integration of the Two Dimensions in the Welfare Concept," Journal of Econometrics, 50, 69-89, 1991. – reference: Layard, R., Happiness: Lessons From a New Science, Penguin, London, 2011. – reference: Abul Naga, R. and T. Yalcin, "Inequality Measurement for Ordered Response Health Data," Journal of Health Economics, 27, 1614-1625, 2008. – reference: Ng, Y.-K., "Happiness Surveys: Some Comparability Issues and an Exploratory Survey Based on Just Perceivable Increments," Social Indicators Research, 38, 1-27, 1996. – reference: Layard, R., "Measuring Subjective Wellbeing," Science, 327, 534-535, 2010. – reference: Sen, A., The Idea of Justice, Penguin, London, 2009. – reference: Madden, D., "Impact of an Economic Boom on the Level and Distribution of Subjective Well-Being: Ireland 1994-2001," Journal of Happiness Studies, 12, 667-679, 2011. – reference: Kalmijn, W. and L. R. Arends, "Measures in Inequality: Application to Happiness in Nations," Social Indicators Research, 99, 147-162, 2010. – reference: Goldsmith, W. W. and E. J. Blakley, Separate Societies: Poverty and Inequality in U.S. Cities, Temple University Press, Philadelphia, PA, 2010. – reference: Di Tella, R., R. MacCulloch, and A. Oswald, "The Macroeconomics of Happiness," Review of Economics and Statistics, 85, 809-827, 2003. – reference: Foster, J. and E. Ok, "Lorenz Dominance and Variance of Logarithms," Econometrica, 67, 901-907, 1999. – year: 2011 – year: 2009 – volume: 107 start-page: 1815 year: 1997 end-page: 1831 article-title: Happiness and Economic Performance publication-title: Economic Journal – volume: 37 start-page: S33 year: 2008 end-page: 79 article-title: Happiness Inequality in the United States publication-title: Journal of Legal Studies – volume: 12 start-page: 667 year: 2011 end-page: 679 article-title: Impact of an Economic Boom on the Level and Distribution of Subjective Well‐Being: Ireland 1994–2001 publication-title: Journal of Happiness Studies – year: 1987 – volume: 4 start-page: 341 year: 1997 end-page: 372 article-title: Job Satisfaction and Gender: Why are Women So Happy at Work? publication-title: Labour Economics – year: 1973 – volume: 50 start-page: 69 year: 1991 end-page: 89 article-title: Ordinal and Cardinal Utility: An Integration of the Two Dimensions in the Welfare Concept publication-title: Journal of Econometrics – volume: 88 start-page: 2009 year: 2004 end-page: 2042 article-title: Inequality and Happiness: Are Europeans and Americans Different? publication-title: Journal of Public Economics – year: 1990 – year: 1994 – year: 2010 – volume: 27 start-page: 1614 year: 2008 end-page: 1625 article-title: Inequality Measurement for Ordered Response Health Data publication-title: Journal of Health Economics – volume: 4 start-page: 107 year: 2006 end-page: 122 article-title: Inequality and Happiness: Insights from Latin America publication-title: Journal of Economic Inequality – volume: 85 start-page: 809 year: 2003 end-page: 827 article-title: The Macroeconomics of Happiness publication-title: Review of Economics and Statistics – volume: 23 start-page: 505 year: 2004 end-page: 524 article-title: Measuring Health Inequality Using Qualitative Data publication-title: Journal of Health Economics – volume: 99 start-page: 147 year: 2010 end-page: 162 article-title: Measures in Inequality: Application to Happiness in Nations publication-title: Social Indicators Research – volume: 327 start-page: 534 year: 2010 end-page: 535 article-title: Measuring Subjective Wellbeing publication-title: Science – year: 2004 – volume: 6 start-page: 357 year: 2005 end-page: 396 article-title: Measuring Inequality of Happiness in Nations: In Search of Proper Statistics publication-title: Journal of Happiness Studies – volume: 38 start-page: 1 year: 1996 end-page: 27 article-title: Happiness Surveys: Some Comparability Issues and an Exploratory Survey Based on Just Perceivable Increments publication-title: Social Indicators Research – volume: 6 start-page: 397 year: 2005 end-page: 420 article-title: Level and Inequality of Happiness in Nations: Does Greater Happiness of a Greater Number imply Greater Inequality in Happiness? publication-title: Journal of Happiness Studies – volume: 19 start-page: 243 year: 2010 end-page: 250 article-title: Ordinal and Cardinal Measures of Health Inequality: An Empirical Comparison publication-title: Health Economics – volume: 67 start-page: 901 year: 1999 end-page: 907 article-title: Lorenz Dominance and Variance of Logarithms publication-title: Econometrica – volume: 44 start-page: 205 year: 2010 end-page: 223 article-title: Does a Rising Tide Lift All the Boats? Explaining the National Inequality of Happiness publication-title: Journal of Economic Issues – year: 1976 – volume: 6 start-page: 457 year: 2005 end-page: 487 article-title: Return of Inequality in Modern Society? Test by Dispersion of Life Satisfaction Across Time and Nations publication-title: Journal of Happiness Studies |
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| SubjectTerms | D39 dominance Economic theory Equality Gross domestic product Happiness I39 Income distribution Income inequality Inequality median inequality Psychological aspects Rating scale independence Social inequality Studies U.S.A Well-being |
| Title | Inequality of Happiness in the U.S.: 1972-2010 |
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