Regional Disparity Measured by Subjective Happiness

In this paper we estimate the regional disparity of income and happiness between prefectures using the results of questionnaire survey conducted by 21st Century COE program of Osaka University from 2003 to 2006. We found the followings. 1) Three measures of disparity, multiple comparisons, regression over prefecture dummies, and Gini indexes, reveal that the disparity of happiness was smaller than that of income. 2) When a part of income that depends on the personal attiributes as well as attributes of respondents, such as gender and age are adujusted, most of the disparity of happiness between prefectures is dissolved. 3) Three measures indicate that the average income increased, wihile income disparity has widened from 2003 to 2006, and average happiness decreased, while disparity of happiness remained constant over this period.