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Relative Income, Suicidal Ideation, and Life Satisfaction: Evidence from South Korea

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  • Kang, Songman
  • Lim, Soo Hwan

Abstract

The relative income hypothesis predicts that an individualʼs level of happiness decreases in othersʼ income. We examine its empirical relevance in South Korea using large survey data from the Korea Welfare Panel Study. We find evidence that higher peer income is strongly correlated with life satisfaction, but its effect on suicidal ideation is modest and largely insignificant. We also find that the effect of peer income is highly heterogeneous; those who consider themselves relatively poorer seem to be more strongly (and adversely) affected by their relative disadvantage than those relatively richer are (positively) affected by their relative advantage.

Suggested Citation

  • Kang, Songman & Lim, Soo Hwan, 2019. "Relative Income, Suicidal Ideation, and Life Satisfaction: Evidence from South Korea," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(1), pages 107-120, June.
    • Handle: RePEc:hit:hitjec:v:60:y:2019:i:1:p:107-120
    DOI: 10.15057/30364
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    References listed on IDEAS

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    More about this item

    Keywords

    relative income; subjective well-being; life satisfaction; suicidal ideation;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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