Measuring the monetary value of social relations: A hedonic approach
Emilio Colombo () and
Luca Stanca ()
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2014, vol. 50, issue C, 77-87
This paper presents an application of the hedonic approach to measure the monetary price of social relations. We use micro data for housing and labor markets in the 103 Italian province capitals to estimate the price of relational amenities and construct monetary indices of quality of relational life. We focus on time spent with friends, active participation in associations and frequency of going out for leisure activities as relational amenities, while controlling for standard amenities such as weather, environment, services, and socio-demographic characteristics. We find that individuals are willing to pay a positive and significant monetary price to live in cities where people spend more time with their friends. A one standard deviation increase in the share of those who meet their friends most frequently is worth an extra € 1150 per year in terms of higher housing costs and foregone wages.
Keywords: Social relations; Social capital; Hedonic prices; Quality of life; Well-being (search for similar items in EconPapers)
JEL-codes: A13 C4 D6 I31 R2 Z13 (search for similar items in EconPapers)
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Working Paper: Measuring the Monetary Value of Social Relations: a Hedonic Approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:50:y:2014:i:c:p:77-87
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