Frame-of-reference bias in subjective welfare regressions
AbstractPast research has found that subjective questions about an individuals'economic status do not correspond closely to measures of economic welfare based on household income or consumption. Survey respondents undoubtedly hold diverse ideas about what it means to be"poor"or"rich."Further, this heterogeneity may be correlated with other characteristics, including welfare, leading to frame-of-reference bias. To test for this bias, vignettes were added to a nationally representative survey of Tajikistan, in which survey respondents rank the economic status of the theoretical vignette households, as well as their own. The vignette rankings are used to reveal the respondent's own scale. The findings indicate that respondents hold diverse scales in assessing their welfare, but that there is little bias in either the economic gradient of subjective welfare or most other coefficients on covariates of interest. These results provide a firmer foundation for standard survey methods and regression specifications for subjective welfare data.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4904.
Date of creation: 01 Apr 2009
Date of revision:
Rural Poverty Reduction; Housing&Human Habitats; Economic Theory&Research; Poverty Lines; Agricultural Knowledge&Information Systems;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
- NEP-DEV-2009-05-02 (Development)
- NEP-HAP-2009-05-02 (Economics of Happiness)
- NEP-LTV-2009-05-02 (Unemployment, Inequality & Poverty)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leonardo Becchetti & Alessandra Pelloni, 2010.
"What are we learning from the life satisfaction literature?,"
Econometica Working Papers
- Leonardo Becchetti & Alessandra Pelloni, 2013. "What are we learning from the life satisfaction literature?," International Review of Economics, Springer, vol. 60(2), pages 113-155, June.
- Leonardo Becchetti & Alessandra Pelloni, . "What are we learning from the life satisfaction literature?," Working Papers 2, Department of the Treasury, Ministry of the Economy and of Finance.
- Becchetti, Leonardo & Pelloni , Alessandra, 2010. "What are we learning from the life satisfaction literature?," AICCON Working Papers 76-2010, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
- Martin Ravallion, 2012.
"Mashup Indices of Development,"
World Bank Research Observer,
World Bank Group, vol. 27(1), pages 1-32, February.
- Leonardo Becchetti & Andrew E. Clark & Elena Giachin Ricco, 2011.
"The value of diplomacy: Bilateral relations and immigrant well-being,"
PSE Working Papers
- Leonardo Becchetti & Andrew E. Clark & Elena Giachin Ricca, 2011. "The Value of Diplomacy: Bilateral Relations and Immigrant Well-Being," CEIS Research Paper 190, Tor Vergata University, CEIS, revised 29 Mar 2011.
- Leonardo Becchetti & Andrew E. Clark & Elena Giachin Ricco, 2011. "The value of diplomacy: Bilateral relations and immigrant well-being," Working Papers halshs-00580907, HAL.
- Asadullah, Mohammad Niaz & Chaudhury, Nazmul, 2012.
"Subjective well-being and relative poverty in rural Bangladesh,"
Journal of Economic Psychology,
Elsevier, vol. 33(5), pages 940-950.
- Asadullah, Niaz & Chaudhury, Nazmul, 2012. "Subjective Well-Being and Relative Poverty in Rural Bangladesh," IZA Discussion Papers 6569, Institute for the Study of Labor (IZA).
- Shaffer, Paul, 2013. "Ten Years of “Q-Squared”: Implications for Understanding and Explaining Poverty," World Development, Elsevier, vol. 45(C), pages 269-285.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.