Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58965
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dc.contributor.authorBudría, Santiagoen_US
dc.date.accessioned2012-06-12en_US
dc.date.accessioned2012-06-15T07:59:06Z-
dc.date.available2012-06-15T07:59:06Z-
dc.date.issued2012en_US
dc.identifier.piurn:nbn:de:101:1-201303221794-
dc.identifier.urihttp://hdl.handle.net/10419/58965-
dc.description.abstractThis paper challenges the common assumption made by economists to date that income comparisons are similarly important in different segments of the subjective well-being (SWB) distribution. The results, based on the 2000-2007 waves of the German SOEP and on a Generalized Ordered Probit for panel data, show that relative income, as measured either by the mean income of the reference group or the individual ordinal ranking within the group, exerts a differential effect across SWB levels. Such divergence is assessed by means of the tradeoff ratio between household income and the relative income variables. The results show that a low rank and falling below the average income in one's group are significant determinants of low SWB but largely irrelevant when accounting for high SWB. The fact that conditionally unhappy individuals are more sensitive to comparisons, particularly if they are unfavorable, is consistent with earlier laboratory studies in the field of psychology.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aDiscussion Paper series, Forschungsinstitut zur Zukunft der Arbeit |x6591en_US
dc.subject.jelD62en_US
dc.subject.jelI31en_US
dc.subject.ddc330en_US
dc.subject.keywordsubjective well-beingen_US
dc.subject.keywordcomparison incomeen_US
dc.subject.keywordincome ranken_US
dc.subject.keywordgeneralized ordered response modelen_US
dc.subject.stwZufriedenheiten_US
dc.subject.stwEinkommensverteilungen_US
dc.subject.stwVergleichen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleAre relative-income effects constant across the well-being distribution?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn717503372en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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