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Psychology

The Effects of Income Inequality on Subjective Well-Being

Quick fact

People in countries with higher income inequality report lower average levels of happiness, even after controlling for individual income—so being richer doesn't fully shield you from the effects of a wide gap.

Why this is interesting

You’d think a bigger paycheck always makes people happier—but what if the gap between your pay and your neighbor’s matters even more? Why does inequality itself affect your well-being?