Psychosocial and Structural Mechanisms in the Relationship Between Inequality and Happiness
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Abstract
This literature study examines the complex relationship between social inequality and subjective well-being, exploring how structural disparities in income, education, and healthcare access shape individual perceptions of happiness, life satisfaction, and stress. Through a qualitative synthesis of multidisciplinary research, the analysis identifies key mediating pathways. Economic inequality primarily affects well-being through psychosocial mechanisms like social comparison and relative deprivation, which foster negative emotions and chronic stress while eroding social trust. Inequalities in education and healthcare access operate through capability and agency pathways, where restricted freedoms and loss of personal control generate anxiety, cognitive burden, and existential insecurity. Crucially, the strength of the link between individual social position and subjective well-being is moderated by macro-level societal factors. High aggregate inequality and weak, corrupt social institutions intensify the negative psychological impact of low status. In contrast, greater equality and strong, protective institutions that ensure fairness and security can buffer these effects. The study concludes that improving population well-being requires integrated policy approaches that directly address multidimensional inequalities while simultaneously strengthening institutional quality and social cohesion, moving beyond a sole focus on economic growth metrics.
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