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Keeping up with the Joneses: Who loses out?

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  • Ulph, David

Abstract

When individuals compare themselves to those with the same wage-rate, status concerns–Keeping up with the Joneses–lead individuals to work who otherwise would have chosen not to, and, for them, well-being is a decreasing function of the wage rate.

Suggested Citation

  • Ulph, David, 2014. "Keeping up with the Joneses: Who loses out?," Economics Letters, Elsevier, vol. 125(3), pages 400-403.
    • Handle: RePEc:eee:ecolet:v:125:y:2014:i:3:p:400-403
    DOI: 10.1016/j.econlet.2014.10.029
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    References listed on IDEAS

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    1. Michael J. Boskin & Eytan Sheshinski, 1978. "Optimal Redistributive Taxation When Individual Welfare Depends upon Relative Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 589-601.
    2. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
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    Citations

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    Cited by:

    1. Felix FitzRoy & Jim Jin & Michael Nolan, 2023. "Higher tax and less work: reverse “Keep up with the Joneses” and rising inequality," Journal of Economics, Springer, vol. 139(3), pages 177-190, August.
    2. Irakli Japaridze & Nagham Sayour, 2021. "Dying from envy: The role of inequality," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1374-1392, June.
    3. Ratbek Dzhumashev & Ainura Tursunalieva, 2016. ""Keeping up with the Joneses" and fertility choice," Monash Economics Working Papers 30-16, Monash University, Department of Economics.
    4. Ulph, Alistair & Ulph, David, 2021. "Environmental policy when consumers value conformity," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    5. Huang, Kevin X.D. & Liu, Fengqi & Meng, Qinglai & Xue, Jianpo, 2022. "Keeping up with the Joneses and the consumption response to government spending," Economics Letters, Elsevier, vol. 220(C).
    6. Frédéric Gavrel & Thérèse Rebière, 2018. "On the equilibrium and welfare consequences of getting ahead of the Smiths," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(2), pages 257-270, April.
    7. FitzRoy, Felix & Jin, Jim & Nolan, Michael A., 2019. "Higher Tax and Less Work: An Optimal Response to Relative Income Concern," IZA Discussion Papers 12468, Institute of Labor Economics (IZA).
    8. Frédéric Gavrel & Thérèse Rebière, 2015. "On the Equilibrium and Welfare Consequences of Going Ahead of the Smiths," Working Papers halshs-01242504, HAL.

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    More about this item

    Keywords

    Veblen effects; Labour supply; Nash equilibrium; Wages and well-being;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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