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| Content Provider | frontiers |
|---|---|
| Author | Gao, Lingxi Sun, Bochi Du, Ziqing Lv, Guangming |
| Abstract | Since Easterlin pointed out that economic growth in nations does not guarantee increasing happiness for the average citizen, the underlying reason has remained controversial. The present study focuses on income inequality to explain the “Easterlin Paradox,” ignoring the permanent inequality that long-term wealth accumulation brings. Based on social comparison theory, the literature aims to determine how wealth inequality, which accompanies economic growth, diminishes one’s happiness (inequality aversion). Specifically, we conduct this study in which we split the wealth inequality into the upward wealth inequality and the downward wealth inequality as measures of upward comparison and downward comparison, respectively. The upward wealth inequality measures the average gap between one and the better-off in wealth while the downward wealth inequality measures the average gap between one and the worse-off in wealth. Furthermore, the heterogeneity of the area of respondent is analyzed and the family life cycle is tested as a moderator. The main findings of the paper are as follows: (1) The empirical test results of hypothesis 1 indicate that the upward wealth inequality aversion (jealousy effect: people envy who is richer than themselves) is stronger than the downward wealth inequality inclination (proud effect: people enjoy having a superior position in the wealth hierarchy). It is due to the psychological preference: loss aversion. As an increase in upward distance implies a ... |
| ISSN | 16641078 |
| DOI | 10.3389/fpsyg.2022.829707 |
| Volume Number | 13 |
| Journal | Frontiers in Psychology |
| Language | English |
| Publisher Date | 2022-04-11 |
| Access Restriction | Open |
| Subject Keyword | Wealth inequality Happiness Life cycle Gini Coefficient Social comparison The downward wealth inequality The upward wealth inequality |
| Content Type | Text |
| Resource Type | Article |
| Subject | Psychology |
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