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Positional concerns through the life-cycle

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  • Akay, Alpaslan
  • Martinsson, Peter

Abstract

We use survey experimental data to analyze how people's positional concerns regarding income, car consumption and working hours vary with age. Our analysis suggests that the degree of positional concerns is not homogenous across the life-cycle. Our experimental approach shows a robust life-cycle pattern of positional concerns: young people experience a low degree of positional concerns, yet the level of concern for income increases gradually with age. The results also differ across goods. While the degree of positional concerns towards the income and car consumption is increasing, it is decreasing for working hours (leisure time) through the life-cycle with a non-monotonic pattern.

Suggested Citation

  • Akay, Alpaslan & Martinsson, Peter, 2019. "Positional concerns through the life-cycle," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 98-103.
    • Handle: RePEc:eee:soceco:v:78:y:2019:i:c:p:98-103
    DOI: 10.1016/j.socec.2018.12.005
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    2. Mageli, Ingvild & Mannberg, Andrea & Heen, Eirik Eriksen, 2022. "With whom, and about what, do we compete for social status? Effects of social closeness and relevance of reference groups for positional concerns," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).

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    More about this item

    Keywords

    Positional concerns; Life-cycle; Survey experiment;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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