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

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Author Info
Geeta Kingdon (Centre for the Study of African Economies)
John Knight (Economics Department , University of Oxford)

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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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Paper provided by EconWPA in its series Development and Comp Systems with number 0409067.

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Length: 32 pages
Date of creation: 28 Sep 2004
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Handle: RePEc:wpa:wuwpdc:0409067

Note: Type of Document - pdf; pages: 32
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Web page: http://129.3.20.41

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Related research
Keywords: Subjective well-being; happiness; comparator groups; altruism; envy; relative deprivation; standard-setting; race; South Africa;

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Find related papers by JEL classification:
D60 - Microeconomics - - Welfare Economics - - - General
D62 - Microeconomics - - Welfare Economics - - - Externalities
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism
A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General

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    Other versions:
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