Affluence and Subjective Well-Being: Does Income Inequality Moderate their Associations?

Using the Gallup World Poll data, we examined whether national income inequality moderated the effects of affluence on individual subjective well-being (SWB). Multilevel analyses found that people reported higher life evaluation in years when their nation had higher GDP. Between-nation effects showed that people in wealthier nations reported greater SWB (but also more negative feelings) than those in poorer nations. Furthermore, people in unequal nations (i.e., greater income inequality) reported higher life evaluation and positive feelings than those in more equal nations. National income inequality also moderated the effects of individual-level income on SWB— income showed stronger associations with SWB in more equal nations than in nations with higher income inequality. People who earned higher incomes had higher life evaluation and positive feelings, and lower negative feelings than those who earned lower incomes, but the effects were stronger in more equal nations. These findings suggest that money matters less to the SWB of people in unequal nations than those in equal nations.