The Role of Proximity in Social Income Dynamic Comparisons and Well-Being

Raquel Fonseca and Ana I. Moro-Egido

CIRANO Working Papers from CIRANO

Abstract: The study investigates how proximity influences social income comparisons and their impact on well-being, using data from the Spanish Survey of Household Finances (2002-2017). It finds that static comparisons with significantly richer individuals negatively affect well-being, while dynamic comparisons improve well-being when individuals surpass previously wealthier peers. The effects are moderated by the degree of proximity, with significant impacts only observed when income differences are substantial. The research highlights the complex interplay between envy, pride, and signaling effects in shaping subjective well-being. L'étude examine comment la proximité influence les comparaisons de revenus sociaux et leur impact sur le bien-être, en utilisant les données de l'enquête espagnole sur les finances des ménages : Spanish Survey of Household Finances (2002-2017). Elle constate que les comparaisons statiques avec des individus significativement plus riches affectent négativement le bien-être, tandis que les comparaisons dynamiques améliorent le bien-être lorsque les individus dépassent des pairs auparavant plus riches. Les effets sont modérés par le degré de proximité, avec des impacts significatifs uniquement observés lorsque les différences de revenus sont substantielles. La recherche met en lumière l'interaction complexe entre l'envie, la fierté et les effets de signalisation dans la formation du bien-être subjectif.

Keywords: static and dynamic relative hypotheses; income; proximity; well-being; hypothèses relatives statiques et dynamiques; revenu; proximité; bien-être (search for similar items in EconPapers)
JEL-codes: C29 D31 I31 (search for similar items in EconPapers)
Date: 2025-04-25
New Economics Papers: this item is included in nep-hea
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2025s-10

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