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What explains life satisfaction? Relative income or rank income? The case of Ecuador

H.Nicolás Acosta-González and Oscar David Marcenaro-Gutiérrez
Authors registered in the RePEc Author Service: Oscar Marcenaro Gutierrez ()

Applied Economics Letters, 2022, vol. 29, issue 3, 195-199

Abstract: We test whether various measures of relative income and rank income hypothesis explain life satisfaction in Ecuador. We found robust evidence that the rank position of the income within the reference group explains life satisfaction. In contrast, the effect of relative income measures on happiness is sensitive to the variables used to construct the reference group.

Date: 2022
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DOI: 10.1080/13504851.2020.1861193

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