| By: |
Claudia Senik (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Université Paris-Sorbonne - Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris) |
| Abstract: |
This paper provides direct evidence that comparisons exert a significant
effect on subjective well-being. It also evaluates the relative importance of
different types of benchmarks. Internal comparisons to one's own past living
standard outweigh any other comparison benchmarks. Local comparisons (to one's
parents, former colleagues or high school mates) are more powerful than
self-ranking in the social ladder. The impact of comparisons is asymmetric:
under-performing one's benchmark always has a greater welfare effect than
out-performing it (in absolute value). Comparisons which reduce satisfaction
also increase the demand for income redistribution, but there, the relative
impact of subjective ranking is preponderant. |
| Keywords: |
subjective well-being ; income comparisons ; demand for income redistribution ; internal and external benchmarks ; transition |
| Date: |
2011–04–22 |
| URL: |
http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00588023&r=hap |