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Economic satisfaction and income rank in small neighbourhoods Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew E. Clark
Nicolai Kristensen
Niels Westergård-Nielsen
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We contribute to the literature on well-being and comparisons by appealing to new Danish data dividing the country up into around 9000 small neighbourhoods. Administrative data provides us with the income of every person in each of these neighbourhoods. This income information is matched to demographic and economic satisfaction variables from eight years of Danish ECHP data. Panel regression analysis shows that, conditional on own household income, respondents report higher satisfaction levels when their neighbours are richer. However, the individuals are rank-sensitive: conditional on own income and neighbourhood median income, individuals are more satisfied as their percentile neighbourhood ranking improves. A ten percentage point rise in rank (i.e. from 40 th to 20 th position in a 200-household cell) is worth 0.11 on a one to six scale, which is a large marginal effect in satisfaction terms.
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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number
2008-44.
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Date of creation: 2008Date of revision:
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Article Paper Clark, Andrew E. & Kristensen, Nicolai & Westergård-Nielsen, Niels, 2008.
"Economic Satisfaction and Income Rank in Small Neighbourhoods ,"
IZA Discussion Papers
3813, Institute for the Study of Labor (IZA).
[Downloadable!] Clark, Andrew E. & Kristensen, Nicolai & Westergaard-Nielsen, Niels, 2008.
"Economic Satisfaction and Income Rank in Small Neighbourhoods ,"
Working Papers
08-25, University of Aarhus, Aarhus School of Business, Department of Economics.
[Downloadable!] This paper has been announced in the following NEP Reports :
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.: David G. Blanchflower & Andrew J. Oswald, 2000.
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NBER Working Papers
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Other versions:
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.
[Downloadable!] Blanchflower, David G. & Oswald, Andrew J., 2004.
"Well-being over time in Britain and the USA ,"
Journal of Public Economics ,
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CReAM Discussion Paper Series
0810, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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Other versions:
Damm, Anna Piil & Schultz-Nielsen, Marie Louise, 2008.
"The Construction of Neighbourhoods and its Relevance for the Measurement of Social and Ethnic Segregation : Evidence from Denmark ,"
Working Papers
08-17, University of Aarhus, Aarhus School of Business, Department of Economics.
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"The Construction of Neighbourhoods and its Relevance for the Measurement of Social and Ethnic Segregation: Evidence from Denmark ,"
IZA Discussion Papers
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Journal of Economic Behavior & Organization ,
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"Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects ,"
The Centre for Market and Public Organisation
04/106, Department of Economics, University of Bristol, UK.
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Other versions:
Bolster, Anne & Burgess, Simon & Johnston, Ron & Jones, Kelvyn & Propper, Carol & Sarker, Rebecca, 2004.
"Neighbourhoods, Households and Income Dynamics: A Semi-Parametric Investigation of Neighbourhood Effects ,"
CEPR Discussion Papers
4611, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Anne Bolster & Simon Burgess & Ron Johnston & Kelvyn Jones & Carol Propper & Rebecca Sarker, 2007.
"Neighbourhoods, households and income dynamics: a semi-parametric investigation of neighbourhood effects ,"
Journal of Economic Geography ,
Oxford University Press, vol. 7(1), pages 1-38, January.
[Downloadable!] (restricted) Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008.
"Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles ,"
Journal of Economic Literature ,
American Economic Association, vol. 46(1), pages 95-144, March.
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"How's the Job? Well-Being and Social Capital in the Workplace ,"
NBER Working Papers
11759, National Bureau of Economic Research, Inc.
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Carol Graham & Andrew Felton, 2006.
"Inequality and happiness: Insights from Latin America ,"
Journal of Economic Inequality ,
Springer, vol. 4(1), pages 107-122, April.
[Downloadable!] (restricted)
Brown, Gordon D. A. & Gardner, Jonathan & Oswald, Andrew & Qian, Jing, 2005.
"Does Wage Rank Affect Employees’ Wellbeing? ,"
IZA Discussion Papers
1505, Institute for the Study of Labor (IZA).
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Erzo F. P. Luttmer, 2005.
"Neighbors as Negatives: Relative Earnings and Well-Being ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 120(3), pages 963-1002, August.
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Andrew E. Clark, 2008.
"Happiness, habits and high rank: Comparisons in economic and social life ,"
PSE Working Papers
2008-61, PSE (Ecole normale supérieure).
[Downloadable!]
Nils Braakmann, 2009.
"Other-Regarding Preferences, Spousal Disability and Happiness: Evidence from German Couples ,"
SOEPpapers
194, DIW Berlin, The German Socio-Economic Panel (SOEP).
[Downloadable!]
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