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Community, Comparisons and Subjective Well-being in a Divided Society

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Author Info
Geeta Kingdon
John Knight () (Department of Economics, University of Oxford)

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Abstract

Abstract: Using a South African data set, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income – measured as average income of others in the local residential cluster – enters the household’s utility function positively but that income of more distant others (others in the district or province) enters negatively. The ordered probit equations indicate that, as well as comparator groups based on spatial proximity, race-based comparator groups are important in the racially divided South African society. It is also found that relative income is more important to happiness at higher levels of absolute income. Potential explanations of these results, and their implications, are considered.

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File URL: http://www.commerce.uct.ac.za/Research_Units/dpru/WorkingPapers/PDF_Files/WP_05-95.pdf
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File Function: First version, 2005
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Publisher Info
Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 9628.

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Length: 29 pages
Date of creation: Jul 2005
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, July 2005, pages 1-29
Handle: RePEc:ctw:wpaper:9628

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Related research
Keywords: South Africa: poverty well-being absolute income household’s utility function

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A1 - General Economics and Teaching - - General Economics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  7. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June. [Downloadable!] (restricted)
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  13. Geeta Kingdon & John Knight, 2004. "Well-being poverty versus income poverty and capabilities poverty?," Development and Comp Systems 0409040, EconWPA. [Downloadable!]
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    Other versions:
  15. Ligon, Ethan & Thomas, Jonathan P & Worrall, Tim, 2002. "Informal Insurance Arrangements with Limited Commitment: Theory and Evidence from Village Economies," Review of Economic Studies, Blackwell Publishing, vol. 69(1), pages 209-44, January.
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  22. Carol Graham & Stefano Pettinato, 2002. "Frustrated achievers: winners, losers and subjective well-being in new market economies," The Journal of Development Studies, Taylor and Francis Journals, vol. 38(4), pages 100-140, April. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Blanchflower, David G., 2008. "International Evidence on Well-being," IZA Discussion Papers 3354, Institute for the Study of Labor (IZA). [Downloadable!]
  2. John F. Heliwell & Haifang Huang, 2005. "How's the Job? Well-Being and Social Capital in the Workplace," NBER Working Papers 11759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. John Knight & Lina Song & Ramani Gunatilaka, 2007. "Subjective Well-being and its Determinants in Rural China," Economics Series Working Papers 334, University of Oxford, Department of Economics. [Downloadable!]
  4. Justina A.V. Fischer & Benno Torgler, 2006. "Does Envy Destroy Social Fundamentals? The Impact Of Relative Income Position On Social Capital," STICERD - Development Economics Papers 46, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  5. Fafchamps, Marcel & Shilpi, Forhad, 2006. "Subjective Welfare, Isolation and Relative Consumption," CEPR Discussion Papers 6002, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Fafchamps, Marcel & Shilpi, Forhad, 2006. "Isolation and Subjective Welfare," CEPR Discussion Papers 6001, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Geeta Kingdon & John Knight, 2006. "Subjective well-being poverty vs . Income poverty and capabilities poverty?," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(7), pages 1199-1224, October. [Downloadable!] (restricted)
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