Wealth gap and happiness: a Southeast European (SEE) perspective

Purpose This study investigates the relationship between income inequality and happiness in Southeast European countries from 2010 to 2021. Design/methodology/approach A panel data approach was employed using statistical techniques within R, analyzing data from the World Bank and World Happiness Report. Robust random effects models were compared with pooled ordinary least squares (OLS) and fixed effects models. Findings The findings reveal that income inequality, measured by the Gini coefficient, does not significantly impact happiness. In contrast, social support, freedom to make life choices, and emotional states are crucial in shaping happiness. Practical implications The study's results have significant implications for Southeast European policymakers. The findings emphasize the importance of policies that enhance social support networks, promote individual autonomy, and address emotional well-being to improve overall happiness and quality of life in the region. Originality/value This research contributes uniquely to happiness economics and development economics by focusing on Southeast Europe, a region often underrepresented in literature. By emphasizing social and emotional factors over economic metrics, the study offers nuanced insights into well-being determinants and policy recommendations.