Age-Specific Income Inequality and Happiness Over the Life Cycle

12 Pages Posted: 12 Sep 2022

See all articles by Claudia Senik

Claudia Senik

Paris School of Economics (PSE)

Hippolyte d'Albis

Paris School of Economics (PSE)

Damien Mayaux

affiliation not provided to SSRN

Abstract

One of the main puzzles uncovered by the happiness literature is the U-shaped relationship between age and self-declared happiness, with a mid-life nadir, around 50-55. In this paper, we show that mid-life is also the moment when within-age income inequality is at its most. We also show that greater within-age income inequality comes with lower life satisfaction. Moreover, this negative impact is stronger for those whose income is below the median level in their age-group. Hence, relative income concerns seem to be a factor of the trough in the agehappiness curve.

Keywords: Life satisfaction, life cycle, age-specific income inequality

Suggested Citation

Senik, Claudia and d'Albis, Hippolyte and Mayaux, Damien, Age-Specific Income Inequality and Happiness Over the Life Cycle. Available at SSRN: https://ssrn.com/abstract=4216320 or http://dx.doi.org/10.2139/ssrn.4216320

Claudia Senik (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Hippolyte D'Albis

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Damien Mayaux

affiliation not provided to SSRN ( email )

No Address Available

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