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It is better to be the head of a chicken than the tail of a phoenix: Concern for relative standing in rural China

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  • Carlsson, Fredrik
  • Qin, Ping

Abstract

This paper examines the concern for relative standing among rural households in China. We used a survey-experimental method to measure to what extent poor Chinese farmers care about their relative income. We found compared to previous studies in developed countries, the concern for relative standing seems to be equally strong among rural households in China. This should be seen in the light of the rapid change China has undergone, with high growth, and increased inequality. Thus, the rural population, which is lagging behind, is suffering not only from the low absolute income but also from low relative income.

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  • Carlsson, Fredrik & Qin, Ping, 2010. "It is better to be the head of a chicken than the tail of a phoenix: Concern for relative standing in rural China," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 180-186, April.
    • Handle: RePEc:eee:soceco:v:39:y:2010:i:2:p:180-186
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    Cited by:

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    2. Sakketa, T.G., 2018. "Relative Deprivation in Income, Assets, and Social Capital: Motivational and Deterrent Impacts on the Well-Being of Rural Youth," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277116, International Association of Agricultural Economists.
    3. Baumann, Florian & Friehe, Tim, 2015. "Status concerns as a motive for crime?," International Review of Law and Economics, Elsevier, vol. 43(C), pages 46-55.
    4. Chen, Xi, 2013. "Relative Deprivation in China," MPRA Paper 48582, University Library of Munich, Germany.
    5. Sun, Ping & Unger, Jennifer B. & Palmer, Paula & Ma, Huiyan & Xie, Bin & Sussman, Steve & Johnson, C. Anderson, 2012. "Relative income inequality and selected health outcomes in urban Chinese youth," Social Science & Medicine, Elsevier, vol. 74(1), pages 84-91.
    6. Inga Hillesheim & Mario Mechtel, 2012. "Relative Consumption Concerns or Non-Monotonic Preferences?," IAAEU Discussion Papers 201201, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    7. Friehe, Tim & Mechtel, Mario, 2014. "Conspicuous consumption and political regimes: Evidence from East and West Germany," European Economic Review, Elsevier, vol. 67(C), pages 62-81.
    8. Sakketa Tekalign Gutu & Gerber Nicolas, 2018. "Working Paper 296 - Relative Deprivation and Well-Being of the Rural Youth," Working Paper Series 2423, African Development Bank.
    9. Tim Friehe & Mario Mechtel, 2012. "Conspicuous Consumption and Communism: Evidence from East and West Germany," CESifo Working Paper Series 3922, CESifo.
    10. Tim Friehe & Mario Mechtel, 2017. "Gambling to leapfrog in status?," Review of Economics of the Household, Springer, vol. 15(4), pages 1291-1319, December.
    11. Hillesheim, Inga & Mechtel, Mario, 2013. "How much do others matter? Explaining positional concerns for different goods and personal characteristics," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 61-77.
    12. HAURET Laetitia & WILLIAMS Donald R., 2017. "Choice of colleagues as reference group for wage comparison: does group composition matter?," LISER Working Paper Series 2017-10, Luxembourg Institute of Socio-Economic Research (LISER).
    13. Mageli, Ingvild & Mannberg, Andrea & Heen, Eirik Eriksen, 2022. "With whom, and about what, do we compete for social status? Effects of social closeness and relevance of reference groups for positional concerns," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    14. Liwen Chen & Bobby Chung & Guanghua Wang, 2021. "Exposure to Socially Influential Peer Parents: Evidence from Cadre Parents in China," Working Papers 2021-052, Human Capital and Economic Opportunity Working Group.
    15. Kopp, Thomas & Dorn, Franziska, 2018. "Social equity and ecological sustainability: Can the two be achieved together?," University of Göttingen Working Papers in Economics 357, University of Goettingen, Department of Economics.
    16. Anderson, C. Leigh & Stahley, Katelyn & Cullen, Alison C., 2014. "Individual and intra-household positionality in Vietnam," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 26-34.
    17. Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2012. "Being the best or doing the right thing? An investigation of positional, prosocial and conformist preferences in provision of public goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 705-711.
    18. Chen, Xi, 2015. "Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications," IZA Discussion Papers 9519, Institute of Labor Economics (IZA).

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    Relative standing China Inequality;

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