Happiness & Inequality: Evidence From a Natural Experiment in South Africa

Using South African Happiness survey data from The World Value Series for the years 1990, 1996 and 2001, we attempt to identify what effect a change in social mobility has on happiness and inequality. We use the abolishment of Apartheid, the legal system of racial segregration, as a natural experiment for the study. We find that the average happiness of the poor increases post apartheid and their averseness to inequality increases directly after the abrogation of apartheid and then in 2001 shows no significant change. The rich also experience higher happiness levels post apartheid but in smaller amounts than the poor. Their aversion to inequality raises slightly post apartheid but shows no significant change in the long run.