Mind the gap: Perceived economic inequality and the well-being gap around the globe

Abstract

The link between economic inequality and individual well-being has been gaining increasing research attention. This study examines this relationship using data from 71 countries with diverse national incomes, addressing three key research gaps: (1) incorporating measures of both perceived and objective economic inequality, (2) extending analysis to multiple components of well-being beyond happiness, including meaning in life, harmony, and spirituality, and (3) assessing levels of both current and ideal well-being. Findings reveal that perceived economic inequality predicts personal well-being more strongly than objective inequality. In addition, perceived inequality is associated with a wider gap between current and ideal levels of happiness, meaning, harmony, and spirituality, although national income moderates the effects of meaning, harmony, and spirituality. We discuss the implications of these results, highlighting the need for more culturally sensitive studies on perceived economic inequality and well-being.