This paper examines the relationship between inequality and individual happiness, using survey data from the United States and Europe. It finds that individuals report lower happiness levels when inequality is high, even after controlling for income, personal characteristics, and country or state dummies. The effect is stronger in Europe than in the US. In Europe, the poor and left-leaning individuals are particularly unhappy with inequality, while in the US, the happiness of the poor and left-leaning is not correlated with inequality. Interestingly, in the US, the rich are especially bothered by inequality. The authors argue that these findings are consistent with the perception that Americans live in a more mobile society, where individual effort can move people up and down the income ladder, while Europeans believe in a less mobile society. The study uses data from the United States General Social Survey and the Euro-Barometer Survey Series to analyze happiness and inequality. It finds that inequality has a negative effect on happiness in Europe, particularly for the poor and left-leaning individuals. In contrast, in the US, the effect of inequality on happiness is less pronounced, with the rich being the most affected. The authors suggest that differences in perceived social mobility explain these findings. Americans perceive their society as more mobile, while Europeans believe in a less mobile society. This perception influences how individuals value inequality and their happiness. The paper also discusses the role of social mobility in shaping preferences for redistribution. It finds that social mobility affects how individuals value redistributive policies, with forward-looking individuals more likely to support redistribution. The study highlights the importance of considering both individual characteristics and macroeconomic factors when analyzing the relationship between inequality and happiness. Overall, the findings suggest that inequality has a significant negative impact on happiness in Europe, while in the US, the effect is less pronounced, particularly for the rich.This paper examines the relationship between inequality and individual happiness, using survey data from the United States and Europe. It finds that individuals report lower happiness levels when inequality is high, even after controlling for income, personal characteristics, and country or state dummies. The effect is stronger in Europe than in the US. In Europe, the poor and left-leaning individuals are particularly unhappy with inequality, while in the US, the happiness of the poor and left-leaning is not correlated with inequality. Interestingly, in the US, the rich are especially bothered by inequality. The authors argue that these findings are consistent with the perception that Americans live in a more mobile society, where individual effort can move people up and down the income ladder, while Europeans believe in a less mobile society. The study uses data from the United States General Social Survey and the Euro-Barometer Survey Series to analyze happiness and inequality. It finds that inequality has a negative effect on happiness in Europe, particularly for the poor and left-leaning individuals. In contrast, in the US, the effect of inequality on happiness is less pronounced, with the rich being the most affected. The authors suggest that differences in perceived social mobility explain these findings. Americans perceive their society as more mobile, while Europeans believe in a less mobile society. This perception influences how individuals value inequality and their happiness. The paper also discusses the role of social mobility in shaping preferences for redistribution. It finds that social mobility affects how individuals value redistributive policies, with forward-looking individuals more likely to support redistribution. The study highlights the importance of considering both individual characteristics and macroeconomic factors when analyzing the relationship between inequality and happiness. Overall, the findings suggest that inequality has a significant negative impact on happiness in Europe, while in the US, the effect is less pronounced, particularly for the rich.