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Interindividual deprivation, close and remote individuals

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  • Luis José Imedio Olmedo

    (Dpto. Estadística y Econometría, University of Málaga.)

  • Elena Bárcena-Martín

    ()
    (Dpto. Estadística y Econometría, University of Málaga.)

  • Encarnación M. Parrado Gallardo

    (Dpto. Estadística y Econometría, University of Málaga.)

Abstract

In assessing relative deprivation, the classical approach considers that individuals compare their income with each and every income of the distribution, and assign equal weight to these comparisons. In this paper we propose a more realistic alternative approach to obtain individual deprivation. We assume that the deprivation of the individual depends, to a greater extent, on the situation of those who are part of their social environment (neighbors, colleagues, family, or, in general, the individual’s reference group) rather than on the situation of those in an unattainable situation from the individual’s point of view. In developing their aspirations, individuals focus on the group to which they belong or at least, they feel they are likely to belong to. As a particular case, our proposal includes the classical approach, allowing us to explain some situations that do not fall under the assumptions of that approach.

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File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers13_08.pdf
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Bibliographic Info

Paper provided by Department of Economic Theory and Economic History of the University of Granada. in its series ThE Papers with number 13/08.

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Length: 17 pages
Date of creation: 05 Sep 2013
Date of revision:
Handle: RePEc:gra:wpaper:13/08

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Keywords: Inequality; inter-individual comparisons; reference groups; weighting functions.;

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