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Relative deprivation in the labor market

Author

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  • Paolo Verme

    (World Bank, USA)

Abstract

Why do different population groups (e.g. rural vs. urban, youth vs. elderly and men vs. women) experience the same objective labor status differently? One hypothesis is that people are more concerned with relative deprivation than objective deprivation and they value their own status relative to the status of their peers—the reference group. One way to test this hypothesis in the labor market is to measure individual differences in labor status while controlling for characteristics that define population groups. This measure is called “relative labor deprivation” and can help policymakers to better understand how labor claims are generated.

Suggested Citation

  • Paolo Verme, 2017. "Relative deprivation in the labor market," IZA World of Labor, Institute of Labor Economics (IZA), pages 372-372, June.
    • Handle: RePEc:iza:izawol:journl:y:2017:n:372
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    References listed on IDEAS

    as
    1. Umar Serajuddin & Paolo Verme, 2015. "Who is Deprived? Who Feels Deprived? Labor Deprivation, Youth, and Gender in Morocco," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 140-163, March.
    2. Stefan Eriksson & Jonas Lagerström, 2012. "The Determinants and Some Consequences of Unemployed Workers' Wage Demands," LABOUR, CEIS, vol. 26(2), pages 208-224, June.
    3. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    4. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Economic Systems, Elsevier, vol. 36(1), pages 31-45.
    5. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(2), pages 321-324.
    6. Esteban Calvo & Christine Mair, 2014. "The Multiplicative Effect of Individual- and Country-level Unemployment on Life Satisfaction in 97 Nations (1981-2009)," Working Papers 49, Facultad de Economía y Empresa, Universidad Diego Portales.
    7. Rodrigo Montero & Diego Vásquez, 2015. "Job Satisfaction and Reference Wages: Evidence for a Developing Country," Journal of Happiness Studies, Springer, vol. 16(6), pages 1493-1507, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    objective deprivation; subjective deprivation; unemployment; social discontent;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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