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Comparison income and subjective well-being: Evidence from a nationwide panel survey in Japan

Author

Listed:
  • Kenichi Shiraishi

    (Faculty of Social Welfare, Gunma University of Health and Welfare)

  • Kazuto Sumita

    (Faculty of Economics, Toyo University)

  • Kazuki Kamimura

    (Faculty of Economics, Toyo University)

  • Shohei Okamoto

    (Department of Policy and Planning Sciences, University of Tsukuba)

  • Kohei Komamura

    (Faculty of Economics, Keio University)

Abstract

This study conducts a social comparison of income in Japan and is the first to consider geographical distance in relation to comparison income. The results of a fixed-effects ordered logit model analysis show that comparison income is negatively correlated with life satisfaction. Therefore, our study provides evidence for the relative income hypothesis. Furthermore, income comparison is not symmetric, in line with the idea proposed by Duesenberry in 1949. Therefore, individuals may feel a sense of relative deprivation when others earn a higher income. Conversely, there is a lack of relative satisfaction when others earn a lower income. These findings indicate that policies promoting the equitable distribution of economic resources can potentially enhance the well-being of the Japanese population.

Suggested Citation

  • Kenichi Shiraishi & Kazuto Sumita & Kazuki Kamimura & Shohei Okamoto & Kohei Komamura, 2026. "Comparison income and subjective well-being: Evidence from a nationwide panel survey in Japan," Economics Bulletin, AccessEcon, vol. 46(2), pages 415-428.
    • Handle: RePEc:ebl:ecbull:eb-23-00533
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D6 - Microeconomics - - Welfare Economics

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