Deciphering the Relationship Between Income Inequality and Life Satisfaction: Who, When and Where?

Abstract

This article examines the association between income inequality and life satisfaction across individuals (who), times (when) and countries (where) drawing on the Integrated European Values Survey/World Values Survey (over 370 thousand respondents, 84 countries, 1981–2022; Study 1) and the Gallup World Poll (over 1.5 million respondents, 107 countries, 2009–2023; Study 2). Satisfaction gaps between low- versus high-status individuals widened under high inequality: low-status individuals’ satisfaction decreased during periods of high inequality (Studies 1 and 2) and in countries with high inequality (Study 2), whereas high-status individuals’ satisfaction remained unaffected. Among countries with greater power distance, unequal countries were more satisfied than equal countries (Study 1). Life satisfaction tended to decrease when inequality increased over time in wealthier and religious countries, whereas the opposite pattern emerged in poorer and secular countries (Study 2). These findings highlight the importance of considering who, when and where questions across levels of inequality.