Inequality and Life Satisfaction in Low- and Middle-Income Countries: The Role of Opportunity

Teresa Maria García-Muñoz, Juliette Milgram-Baleix and Omar Odeh-Odeh
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Teresa Maria García-Muñoz: Department of Quantitative Methods for the Economy and Business, Faculty of Economics and Business, University of Granada, 18011 Granada, Spain
Juliette Milgram-Baleix: Department of Theory and Economic History, University of Granada, 18011 Granada, Spain
Omar Odeh-Odeh: Department of Theory and Economic History, University of Granada, 18011 Granada, Spain
Authors registered in the RePEc Author Service: Juliette Milgram

Societies, 2019, vol. 9, issue 2, 1-25

Abstract: This study delves into the relationship between income inequality and subjective well-being by gauging the role played by opportunities at the country level. Using data from the World Value Survey, we estimate multilevel models to explain cross-country differences in individuals’ life satisfaction. Opportunity and inequality exert a significant effect per se on life satisfaction, and their joint effect explains the puzzling positive relationship between income inequality and life satisfaction in low- and middle-income countries. Income inequalities reduce the well-being of individuals if opportunities are low, but inequality is not relevant for life satisfaction if opportunities in the country are high. Among the aspects of opportunity that really matter, we show that inclusiveness and access to advanced education play a more major role than political freedom or personal rights. Results apply for different social, income, and education groups.

Keywords: life satisfaction; subjective well-being; income inequality; opportunity (search for similar items in EconPapers)
JEL-codes: A13 A14 P P0 P1 P2 P3 P4 P5 Z1 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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