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Positional income concerns and personality: evidence from Germany

Author

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  • Tim Friehe
  • Mario Mechtel
  • Markus Pannenberg

Abstract

Positional income concerns (PIC) strongly influence economic behaviour and life outcomes. However, very little is known about the underlying heterogeneity regarding their importance across individuals on the one hand and across different reference groups on the other. Our analysis builds on representative survey data reporting PIC vis-à-vis seven reference groups, allowing us to identify marked heterogeneity both between and within subjects. We present evidence about who (in terms of personality) compares to whom (in terms of reference group).

Suggested Citation

  • Tim Friehe & Mario Mechtel & Markus Pannenberg, 2018. "Positional income concerns and personality: evidence from Germany," Applied Economics Letters, Taylor & Francis Journals, vol. 25(14), pages 1024-1028, August.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:14:p:1024-1028
    DOI: 10.1080/13504851.2017.1391995
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    Cited by:

    1. Guillermo Alves & Martín Leites & Gonzalo Salas, 2022. "See it to believe it. Experimental evidence on status good consumption among the youth," Documentos de Trabajo (working papers) 22-12, Instituto de Economía - IECON.
    2. Adam Ayaita & Kerstin Pull, 2022. "Positional preferences and narcissism: evidence from ‘money burning’ dictator games," Applied Economics Letters, Taylor & Francis Journals, vol. 29(3), pages 267-271, February.
    3. André Hajek & Hans-Helmut König, 2019. "Not Getting What You Want? The Impact of Income Comparisons on Subjective Well-Being—Findings of a Population-Based Longitudinal Study in Germany," IJERPH, MDPI, vol. 16(15), pages 1-8, July.
    4. Xavier Ramos & Martín Leites & Camila Paleo & Gonzalo Salas, 2022. "Choosing or Inheriting the Joneses: The origins of reference groups," Working Papers 623, ECINEQ, Society for the Study of Economic Inequality.
    5. Agnes Bäker & Mario Mechtel, 2019. "The Impact Of Peer Presence On Cheating," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 792-812, April.
    6. Alpaslan Akay & Gökhan Karabulut, 2020. "Personality and positionality-evidence from survey experiments with alternative goods," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 123-156, March.

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