Keeping up with the Kardashians: Evidence from a choice experiment with a nationally representative sample

Tomasz Gajderowicz, Roman Kozłowski, Marek Giergiczny and Michał Krawczyk

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2023, vol. 106, issue C

Abstract: This study aims at investigating preferences regarding nominal income, standing in income distribution, and income change over time. We use a nationally representative sample and employ the Discrete Choice Experiment methodology in the random utility framework. We estimate trade-offs between the absolute income, income change over time, and relative standing in income distribution. The general finding is that the importance of relative income is greater for wealthier respondents; moreover, respondents are willing to sacrifice a large amount of their overall well-being for a constant upward trend in their earnings during their life cycle. Males are particularly sensitive to relative income: they are willing to “burn” nominal money to reach a higher status, also controlling for wealth. Our study provides evidence for the driving force behind the pursuit of wealth in more affluent countries. Despite high aggregate consumption levels, there is a concern for status as measured by relative standing in society and own income change over time.

Keywords: Relative income; Income distribution; Income trend; Happiness; Well-being (search for similar items in EconPapers)
JEL-codes: C9 D3 D6 D9 I3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804323001003
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:106:y:2023:i:c:s2214804323001003

DOI: 10.1016/j.socec.2023.102074

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().