Abstract

In the twenty-first century, inequality is a major problem around the world. Researchers have studied negative impacts of income inequality on happiness. However, researchers on international studies have few investigations of inequality and its influences on happiness. The aim of this study is to empirically determine the influence of inequality on happiness in thirty-seven OECD countries. Multiple regression analysis was used to measure the degrees of the seven independent variables’ influences on happiness. Results of this study revealed that, as a measure of inequality, inequality-adjusted income influenced happiness at a significant level. In addition, government integrity influenced happiness at a significant level. The other variables (Gini-coefficient, unemployment, corruption, tax burden, and government spending) were not associated with happiness at a significant level. The findings of this study have important implications for policy decision makers to design public policy and service programs that can increase people’s happiness in the OECD countries.