Volume 16, Issue 1 p. 25-41
ORIGINAL ARTICLE

Subjective economic inequality is associated with lower well-being through more upward comparison and lower trust

Hongfei Du

Corresponding Author

Hongfei Du

Institute of Advanced Studies in Humanities and Social Sciences, Beijing Normal University, Zhuhai, China

Center for Studies of Psychological Application, South China Normal University, Guangzhou, China

Correspondence

Hongfei Du, Institute of Advanced Studies in Humanities and Social Sciences, Beijing Normal University, Zhuhai, China.

Email: [email protected]

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Yajing Huang

Yajing Huang

University of Electronic Science and Technology of China, Zhongshan Institute, Zhongshan, China

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Lijun Ma

Lijun Ma

Department of Psychology, Guangzhou University of Chinese Medicine, Guangzhou, China

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Xin Chen

Xin Chen

Department of Applied Social Sciences, The Hong Kong Polytechnic University, Hong Kong, China

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Peilian Chi

Peilian Chi

Department of Psychology, University of Macau, Macau, China

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Ronnel B. King

Ronnel B. King

Department of Curriculum and Instruction, Faculty of Education, The Chinese University of Hong Kong, Hong Kong SAR, China

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First published: 12 July 2023
Citations: 1

Hongfei Du and Yajing Huang contributed equally to this work and share first authorship.

Abstract

Individuals often misconstrue the actual degree of economic inequality, which might account for the ambiguity in the literature about the role that inequality plays in well-being. Instead of focusing on objective inequality, we propose a subjective inequality approach by investigating the long-term association between subjective economic inequality and well-being (N = 613). We found that subjective inequality predicted lower life satisfaction and higher depression one year later, which were accounted for by more upward socioeconomic comparison and lower trust. Furthermore, the negative association between subjective inequality and well-being remained constant, regardless of individuals' objective socioeconomic status (SES), subjective SES, and mindset of SES. The long-term association between subjective inequality and well-being remained robust after controlling for prior levels of well-being and multiple covariates. Our findings revealed that subjective inequality is detrimental to well-being and opens a new window into psychological research on economic inequality.

CONFLICT OF INTEREST STATEMENT

The authors have no conflict of interest to declare.

DATA AVAILABILITY STATEMENT

The data that support the findings of this study are openly available in OSF at https://osf.io/eucn4/.