Direct Evidence for Income Comparisons and Subjective Well-Being across Reference Groups

Laszlo Goerke and Markus Pannenberg

No 201509, IAAEU Discussion Papers from Institute of Labour Law and Industrial Relations in the European Union (IAAEU)

Abstract: This note provides evidence for the relationship between income comparisons and subjective well-being (SWB), using novel German data on self-reported comparison intensity and perceived relative income for seven reference groups. We find negative correlations between comparison intensity and SWB for colleagues, people in the same occupation and friends, but not for other reference groups, such as neighbours. Work-related income comparisons are mostly upwards and there is a strong negative correlation between perceiving to earn less than the reference group and SWB

Keywords: Income Comparisons; German Socio-Economic Panel (SOEP); Relative Income; Subjective Well-Being (search for similar items in EconPapers)
JEL-codes: D31 D62 I31 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-hap
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Citations: View citations in EconPapers (63)

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Related works:
Journal Article: Direct evidence for income comparisons and subjective well-being across reference groups (2015)
Working Paper: Direct Evidence for Income Comparisons and Subjective Well-Being across Reference Groups (2015)
Working Paper: Direct Evidence for Income Comparisons and Subjective Well-Being across Reference Groups (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:iaa:dpaper:201509

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