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Introduction: Achieving higher levels of happiness is one of the major goals of economists. In addition to achieving higher levels of happiness, reducing the inequality of happiness is also important. Reducing inequalities, including inequality of happiness, is one of the important goals of economic policy makers in today’s world. Meanwhile, the link between oil revenues and inequality of happiness in oil-exporting countries is a major issue that has been little addressed.
Method: The purpose of this paper is to investigate how the rent of oil revenues affect happiness inequality as well as testing the hypothesis of resource curse and the threshold effect of oil rent on the happiness inequality in the OPEC countries during the period of 2005-2012. For this purpose, using theoretical literature and applying the threshold panel method, the factors influencing happiness inequality have been modeled.
Findings: The results of model estimation have shown that the effect of oil rent on happiness inequality is nonlinear and threshold which means before the threshold of 17.7% of the ratio of oil rent to GDP, this variable has a significant negative impact on happiness inequality but after crossing this threshold value, the ratio of oil rent to GDP has not had a significant effect on the happiness inequality in the OPEC countries.
Discussion: Based on the results of this study, it is suggested that policymakers in the OPEC countries pay more oil resources to reduce inequalities including reduce happiness inequality by creating opportunities for happiness for all deciles of society.

 

Keywords: Dynamic Threshold Panel Model, Happiness Inequality, Oil Rent, OPEC Countries, Resource Curse Hypothesis

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