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Relative deprivation and individual well-being

Listed author(s):
  • Xi Chen

    (Yale University, USA, and IZA, Germany)

Registered author(s):

People who are unable to maintain the same standard of living as others around them experience a sense of relative deprivation that has been shown to reduce feelings of well-being. Relative deprivation reflects conditions of worsening relative poverty despite striking reductions in absolute poverty. The effects of relative deprivation explain why average happiness has been stagnant over time despite sharp rises in income. Consumption taxes on status-seeking spending, along with official and traditional sanctions on excess consumption and redistributive policies may lessen the negative impact of relative deprivation on well-being.

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Article provided by Institute for the Study of Labor (IZA) in its journal IZA World of Labor.

Volume (Year): (2015)
Issue (Month): (April)
Pages: 140-140

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Handle: RePEc:iza:izawol:journl:y:2015:n:140
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  1. Ana I. Balsa & Michael T. French & Tracy L. Regan, 2014. "Relative Deprivation and Risky Behaviors," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 446-471.
  2. repec:pri:cheawb:deaton_relative_deprivation is not listed on IDEAS
  3. Chen, Xi, 2013. "Relative Deprivation in China," MPRA Paper 48582, University Library of Munich, Germany.
  4. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.
  5. Chen, Xi & Zhang, Xiaobo, 2012. "Costly Posturing : Relative Status, Ceremonies and Early Child Development in China," WIDER Working Paper Series 070, World Institute for Development Economic Research (UNU-WIDER).
  6. repec:unu:wpaper:wp2012-70 is not listed on IDEAS
  7. Ori Heffetz, 2011. "A Test of Conspicuous Consumption: Visibility and Income Elasticities," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1101-1117, November.
  8. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
  9. Angus Deaton, 2001. "Relative Deprivation, Inequality, and Mortality," NBER Working Papers 8099, National Bureau of Economic Research, Inc.
  10. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
  11. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
  12. Christine Eibner & William N. Evans, 2005. "Relative Deprivation, Poor Health Habits, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  13. Eiji Mangyo & Albert Park, 2011. "Relative Deprivation and Health: Which Reference Groups Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 459-481.
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