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The Effect of Relative Income Position on Social Capital

  • Justina A.V. Fischer

    ()

    (SIAW-HSG, University of St. Gallen)

  • Benno Torgler

    ()

    (Yale Center for International and Area Studies)

This paper examines the influence of relative income position on individuals' attitudes by analyzing ISSP 1998 microdata from 25 countries along four different dimensions. Our results provide evidence for a sizeable relative income effect while also suggesting that absolute income level may be relevant. Changing the income reference group from regional to national does not significantly alter the results.

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File URL: http://www.accessecon.com/pubs/EB/2006/Volume26/EB-05Z10014A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 26 (2006)
Issue (Month): 4 ()
Pages: 1-20

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Handle: RePEc:ebl:ecbull:eb-05z10014
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  1. William N. Evans & W. Kip Viscusi, 1993. "Income Effects and the Value of Health," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 497-518.
  2. Benno Torgler, 2003. "The Importance of Faith: Tax Morale and Religiosity," CREMA Working Paper Series 2003-08, Center for Research in Economics, Management and the Arts (CREMA).
  3. Alm, James & McClelland, Gary H & Schulze, William D, 1999. "Changing the Social Norm of Tax Compliance by Voting," Kyklos, Wiley Blackwell, vol. 52(2), pages 141-71.
  4. Benno Torgler, 2005. "A Knight without a Sword?. The Effects of Audit Courts on Tax Morale," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 161(4), pages 735-, December.
  5. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
  6. Alois Stutzer, . "The Role of Income Aspirations in Individual Happiness," IEW - Working Papers 124, Institute for Empirical Research in Economics - University of Zurich.
  7. Christine Eibner & William N. Evans, 2005. "Relative Deprivation, Poor Health Habits, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  8. 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.
  9. DAVID DORN & Justina Fischer & GEBHARD KIRCHGÄSSNER & ALFONSO SOUSA-POZA, 2005. "Is It Culture or Democracy? The Impact of Democracy, Income, and Culture on Happiness," University of St. Gallen Department of Economics working paper series 2005 2005-12, Department of Economics, University of St. Gallen.
  10. Torgler, Benno, 2005. "Tax morale and direct democracy," European Journal of Political Economy, Elsevier, vol. 21(2), pages 525-531, June.
  11. Christoph A. Schaltegger & Benno Torgler, 2005. "Trust and Fiscal Performance: A Panel Analysis with Swiss Data," CREMA Working Paper Series 2005-05, Center for Research in Economics, Management and the Arts (CREMA).
  12. Paldam, Martin, 2000. " Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-53, December.
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