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Well-being Inequality and Reference Groups - An Agenda for New Research

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  • Bernard M.S. Van Praag

Abstract

It is argued that the concept of well –being inequality cannot be properly defined without taking the referencing process into account. The reference effect depends on how frequently individuals compare with others and on the degree of social transparency in society. In this paper we employ the reference- extended model for incorporating the concept of happiness inequality in happiness studies.We plead for an extension of the present happiness paradigm by setting up a new additional agenda for empirical research in order to get quantified knowledge about the referencing process.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-03/cesifo1_wp2984.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2984.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_2984

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Keywords: subjective well being; happiness; inequality; reference group;

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References

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  1. Christoph Wunder & Andrea Wiencierz & Johannes Schwarze & Helmut Küchenhoff & Sara Kleyer & Philipp Bleninger, 2009. "Well-Being over the Life Span: Semiparametric Evidence from British and German Longitudinal Data," SOEPpapers on Multidisciplinary Panel Data Research 179, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Bernard M.S. van Praag, 2010. "Well-Being Inequality and Reference Groups - An Agenda for New Research," Tinbergen Institute Discussion Papers 10-015/3, Tinbergen Institute, revised 03 Mar 2010.
  3. Clark, Andrew E. & Frijters, Paul & Shields, Michael A., 2007. "Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," IZA Discussion Papers 2840, Institute for the Study of Labor (IZA).
  4. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
  5. Luttmer, Erzo F. P., 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," Working Paper Series rwp04-029, Harvard University, John F. Kennedy School of Government.
  6. Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
  7. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  8. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
  9. Andrew E. Clark & Claudia Senik, 2009. "Who compares to whom? The anatomy of income comparisons in Europe," PSE Working Papers halshs-00586036, HAL.
  10. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.
  11. Ada Ferrer-i-Carbonell & Bernard Van Praag, 2003. "Income Satisfaction Inequality and its Causes," Journal of Economic Inequality, Springer, vol. 1(2), pages 107-127, August.
  12. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2099-2123, August.
  13. Stutzer, Alois, 2004. "The role of income aspirations in individual happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 89-109, May.
  14. Van Praag, Bernard M.S., 1977. "The perception of welfare inequality," European Economic Review, Elsevier, vol. 10(2), pages 189-207.
  15. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
  16. Kapteyn, Arie & Van Praag, Bernard M. S. & Van Herwaarden, Floor G., 1978. "Individual welfare functions and social reference spaces," Economics Letters, Elsevier, vol. 1(2), pages 173-177.
  17. Hagenaars, Aldi J M & van Praag, Bernard M S, 1985. "A Synthesis of Poverty Line Definitions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 139-54, June.
  18. Christoph Wunder & Andrea Wiencierz & Johannes Schwarze & Helmut Küchenhoff & Sara Kleyer & Philipp Bleninger, 2009. "Well-Being over the Life Span: Semiparametric Evidence from British and German Longitudinal Data," Discussion Papers of DIW Berlin 889, DIW Berlin, German Institute for Economic Research.
  19. Wunder, Christoph & Wiencierz, Andrea & Schwarze, Johannes & Küchenhoff, Helmut & Kleyer, Sara & Bleninger, Philipp, 2009. "Well-Being over the Life Span: Semiparametric Evidence from British and German Longitudinal Data," IZA Discussion Papers 4155, Institute for the Study of Labor (IZA).
  20. Praag, B.M.S. van & Herwaarden, F.G. van & Kapteyn, A.J., 1979. "The definition and measurement of social reference spaces," Open Access publications from Tilburg University urn:nbn:nl:ui:12-361904, Tilburg University.
  21. Carol Graham & Andrew Felton, 2006. "Inequality and happiness: Insights from Latin America," Journal of Economic Inequality, Springer, vol. 4(1), pages 107-122, April.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Well-Being Inequality and Reference Groups – An Agenda for New Research
    by maximorossi in NEP-LTV blog on 2010-09-28 20:13:06
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Bernard M.S. van Praag, 2010. "Well-Being Inequality and Reference Groups - An Agenda for New Research," Tinbergen Institute Discussion Papers 10-015/3, Tinbergen Institute, revised 03 Mar 2010.
  2. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Economic Systems, Elsevier, vol. 36(1), pages 31-45.
  3. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2012. "The Great Happiness Moderation," Working Papers halshs-00707290, HAL.
  4. Owen, Ann & Phillips, Anne, 2013. "Education, income, and the distribution of happiness," MPRA Paper 49387, University Library of Munich, Germany.
  5. Dluhosch, Barbara & Horgos, Daniel, 2012. "Trading Up the Happiness Ladder," Working Paper 115/2012, Helmut Schmidt University, Hamburg.
  6. Ada Ferrer-i-Carbonell, 2013. "Happiness economics," SERIEs, Spanish Economic Association, vol. 4(1), pages 35-60, March.
  7. Wen-Chun Chang, 2013. "Climbing up the Social Ladders: Identity, Relative Income, and Subjective Well-being," Social Indicators Research, Springer, vol. 113(1), pages 513-535, August.
  8. J.ntti, Markus & Kanbur, Ravi & Nyyss.l., Milla & Pirttil., Jukka, 2012. "Poverty and Welfare Measurement on the Basis of Prospect Theory," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Lohmann, Steffen, 2013. "Information technologies and subjective well-being: Do material aspirations rise?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79708, Verein für Socialpolitik / German Economic Association.
  10. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2012. "The Great Happiness Moderation," SOEPpapers on Multidisciplinary Panel Data Research 468, DIW Berlin, The German Socio-Economic Panel (SOEP).
  11. Lohmann, Steffen, 2013. "Information technologies and subjective well-being: Does the internet raise material aspirations?," Center for European, Governance and Economic Development Research Discussion Papers 169, University of Goettingen, Department of Economics.
  12. Cristina Bernini & Andrea Guizzardi & Giovanni Angelini, 2013. "DEA-Like Model and Common Weights Approach for the Construction of a Subjective Community Well-Being Indicator," Social Indicators Research, Springer, vol. 114(2), pages 405-424, November.

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