Feeling Richer or Poorer than Others: A Cross-section and Panel Analysis of Subjective Economic Status in Indonesia
Abstract
This paper examines what makes us feel richer or poorer than others. It investigates cross-sectional and longitudinal determinants of individuals' subjective economic status in Indonesia. Using two waves of Indonesian Family Life Surveys, 1997 and 2000, I show that individuals' perceptions of where they are on the economic scale are more dependent on a number of socioeconomic characteristics, as well as their attitudes towards their future economic status, than their current spending capacities would suggest. I also find significant, albeit weaker, expenditure and income effects on individuals' subjective economic status once individual fixed effects are controlled for in the regression. Copyright 2007 The AuthorsJournal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd .
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Article provided by East Asian Economic Association in its journal Asian Economic Journal.
Volume (Year): 21 (2007)
Issue (Month): 2 (06)
Pages: 169-194
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Handle: RePEc:bla:asiaec:v:21:y:2007:i:2:p:169-194
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Nattavudh Powdthavee, 2009. "How important is rank to individual perception of economic standing? A within-community analysis," Journal of Economic Inequality, Springer, vol. 7(3), pages 225-248, September.
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