Perceived Fairness and Life Satisfaction: Exploring the Moderating Role of Country-Level Inequality

Abstract Drawing on a theoretical framework that emphasizes the significant role of fairness in shaping individuals’ subjective well-being (SWB), this study examined the association between perceived income fairness and life satisfaction across 29 European countries using data from European Social Survey Round 9. On average, perceived fairness was positively associated with life satisfaction, supporting the hypothesis that individuals who perceive their incomes as fairer report higher well-being. However, the strength of this relationship varied substantially across national contexts. Multilevel analyses reveal that country-level income inequality significantly moderated this link, with the positive association between perceived fairness and life satisfaction being more pronounced in high-inequality settings. These findings highlight the contextual nature of distributive justice perceptions and demonstrate that the psychological impact of income fairness is intensified by the broader economic context. The study underscores the need for comparative, context-sensitive approaches to understanding the social foundations of subjective well-being.