This paper asks how income distribution affects individual well-being and explores the idea that this relation depends on the degree of mobility and uncertainty in the economy. It mostly concentrates on the relation between satisfaction and reference income (defined as the income of one?s...

This paper illustrates the emergence of inequality aversion in a transition country. Using a series of Polish cross-section surveys, we identify a structural break in the relationship between income inequality and subjective well-being. Inequality, initially perceived as a positive signal of...