A Multidimensional Analysis of Adaptation in a Developing Country Context
Econometric analyses of European datasets suggest that income aspirations increase with current income. This finding is consistent with the adaptation hypothesis - the notion that individual aspirations adjust to reflect personal circumstances and living conditions. We add to these existing studies in two ways: we investigate the relationship between aspirations and living conditions within a developing country rather than a developed country context, thereby extending the analysis to individuals with considerably poorer living conditions, and we expand the analysis to look not only at income but also at educational and health aspirations. Like earlier studies we find that income aspirations increase with both the individual's own actual income and the incomes of those around them. We also find a positive relationship between actual and aspired to education. However, with respect to health, we find that people aspire to more rather than less health when surrounded by others who are ill.
|Date of creation:||01 Nov 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Menno Pradhan & Martin Ravallion, 2000. "Measuring Poverty Using Qualitative Perceptions Of Consumption Adequacy," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 462-471, August.
- Kapteyn, A.J., 1994.
"The measurement of household cost functions : Revealed preference versus subjective measures,"
1994-3, Tilburg University, Center for Economic Research.
- Kapteyn, Arie, 1994. "The Measurement of Household Cost Functions: Revealed Preference versus Subjective Measures," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(4), pages 333-50, November.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Van Praag, Bernard M. S. & Kapteyn, Arie, 1973. "Further evidence on the individual welfare function of income: An empirical investigatiion in The Netherlands," European Economic Review, Elsevier, vol. 4(1), pages 33-62, April.
- Stutzer, Alois, 2004.
"The role of income aspirations in individual happiness,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 54(1), pages 89-109, May.
- Alois Stutzer, . "The Role of Income Aspirations in Individual Happiness," IEW - Working Papers 124, Institute for Empirical Research in Economics - University of Zurich.
- Kapteyn, A.J. & Kooreman, P. & Willemse, R., 1987.
"Some methodological issues in the implementation of subjective poverty definitions,"
FEW 245, Tilburg University, School of Economics and Management.
- Arie Kapteyn & Peter Kooreman & Rob Willemse, 1988. "Some Methodological Issues in the Implementation of Subjective Poverty Definitions," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 222-242.
- Alkire, Sabina, 2002.
"Valuing Freedoms: Sen's Capability Approach and Poverty Reduction,"
Oxford University Press, number 9780199245796, December.
- Alkire, Sabina, 2005. "Valuing Freedoms: Sen's Capability Approach and Poverty Reduction," OUP Catalogue, Oxford University Press, number 9780199283316, December.
- Van Praag, Bernard, 1971.
"The welfare function of income in Belgium: An empirical investigation,"
European Economic Review,
Elsevier, vol. 2(3), pages 337-369.
- Van Praag, Bernard, 1971. "The welfare function of income in Belgium: An empirical investigation," European Economic Review, Elsevier, vol. 11(3), pages 337-369.
- Danziger, Sheldon, et al, 1984. "The Direct Measurement of Welfare Levels: How Much Does It Cost to Make Ends Meet?," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 500-505, August.
- David A Clark & Mozaffar Qizilbash, 2008. "Core Poverty, Vagueness and Adaptation: A New Methodology and Some Results for South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 519-544, April.
- Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
- Charles F. Manski, 1993.
"Identification of Endogenous Social Effects: The Reflection Problem,"
Review of Economic Studies,
Oxford University Press, vol. 60(3), pages 531-542.
- Manski, C.F., 1991. "Identification of Endogenous Social Effects: the Reflection Problem," Working papers 9127, Wisconsin Madison - Social Systems.
- Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
- Robert Biswas-Diener & Ed Diener, 2001. "Making the Best of a Bad Situation: Satisfaction in the Slums of Calcutta," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 55(3), pages 329-352, September.
- Arie Kapteyn & Sara van de Geer & Huib van de Stadt, 1985. "The Impact of Changes in Income and Family Composition on Subjective Measures of Well-Being," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 35-68 National Bureau of Economic Research, Inc.
- Stanovnik, Tine, 1992. "Perception of poverty and income satisfaction : An empirical analysis of Slovene households," Journal of Economic Psychology, Elsevier, vol. 13(1), pages 57-69, March.
- Angelique Chan & Mary Ofstedal & Albert Hermalin, 2002. "Changes in Subjective and Objective Measures of Economic Well-Being and Their Interrelationship among the Elderly in Singapore and Taiwan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 57(3), pages 263-300, March.
- Qizilbash, Mozaffar, 2006. "Capability, Happiness and Adaptation in Sen and J. S. Mill," Utilitas, Cambridge University Press, vol. 18(01), pages 20-32, March.
- Mozaffar Qizilbash, 1997. "A weakness of the capability approach with respect to gender justice," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(2), pages 251-262.
- Robert Biswas-Diener & Ed Diener, 2006. "The Subjective Well-Being of the Homeless, and Lessons for Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(2), pages 185-205, 04.
- Tania Burchardt, 2005. "Are One Man’s Rags Another Man’s Riches? Identifying Adaptive Expectations using Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(1), pages 57-102, October.
- Diane Colasanto & Arie Kapteyn & Jacques van der Gaag, 1984. "Two Subjective Definitions of Poverty: Results from the Wisconsin Basic Needs Study," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 127-138.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:wps/2007-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Birds)
If references are entirely missing, you can add them using this form.