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Relative status and satisfaction

Author

Listed:
  • Stefan Boes

    (Socioeconomic Institute, University of Zurich)

  • Kevin E. Staub

    (Socioeconomic Institute, University of Zurich)

  • Rainer Winkelmann

    (Socioeconomic Institute, University of Zurich)

Abstract

This paper investigates the relationship between income satisfaction of adult children and their relative economic status, using data from the German Socio-Economic Panel and income rank as an indicator of status. The results show that children appear to compare their actual economic status with that of their parents, deriving large satisfaction gains from an income rank that is higher than that of their parents. The effect is asymmetric with regard to parents, as these seem not to be ifluenced by their children's income rank.

Suggested Citation

  • Stefan Boes & Kevin E. Staub & Rainer Winkelmann, 2008. "Relative status and satisfaction," SOI - Working Papers 0816, Socioeconomic Institute - University of Zurich.
    • Handle: RePEc:soz:wpaper:0816
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    References listed on IDEAS

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    7. Karen E. Dynan & Enrichetta Ravina, 2007. "Increasing Income Inequality, External Habits, and Self-Reported Happiness," American Economic Review, American Economic Association, vol. 97(2), pages 226-231, May.
    8. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Guadalupe Manzano-García & Juan-Carlos Ayala-Calvo, 2020. "Entrepreneurial Orientation: Its Relationship with the Entrepreneur’s Subjective Success in SMEs," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    2. Roberta Distante, 2013. "Subjective Well-Being, Income and Relative Concerns in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 81-105, August.
    3. Christian Grund & Johannes Martin, 2017. "Monetary Reference Points of Managers – Empirical Evidence of Status Quo Preferences and Social Comparisons," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(1), pages 70-87, February.
    4. Michele Sennhauser, 2009. "Why the Linear Utility Function is a Risky Choice in Discrete-Choice Experiments," SOI - Working Papers 1014, Socioeconomic Institute - University of Zurich.
    5. Pfaff, Tobias, 2013. "Income comparisons, income adaptation, and life satisfaction: How robust are estimates from survey data?," CIW Discussion Papers 5/2013, University of Münster, Center for Interdisciplinary Economics (CIW).
    6. Robin Samuel & Manfred Bergman & Sandra Hupka-Brunner, 2013. "The Interplay between Educational Achievement, Occupational Success, and Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 75-96, March.
    7. Polk, Andreas & Schmutzler, Armin & Müller, Adrian, 2014. "Lobbying and the power of multinational firms," European Journal of Political Economy, Elsevier, vol. 36(C), pages 209-227.
    8. Lekfuangfu, Warn N. & Odermatt, Reto, 2022. "All I have to do is dream? The role of aspirations in intergenerational mobility and well-being," European Economic Review, Elsevier, vol. 148(C).
    9. Bille, Trine & Fjællegaard, Cecilie Bryld & Frey, Bruno S. & Steiner, Lasse, 2013. "Happiness in the arts—International evidence on artists’ job satisfaction," Economics Letters, Elsevier, vol. 121(1), pages 15-18.
    10. Sasaki, Shusaku & Kurokawa, Hirofumi & Ohtake, Fumio, 2019. "Positive and negative effects of social status on longevity: Evidence from two literary prizes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    11. Martin Carree & Ingrid Verheul, 2012. "What Makes Entrepreneurs Happy? Determinants of Satisfaction Among Founders," Journal of Happiness Studies, Springer, vol. 13(2), pages 371-387, April.
    12. Tobias Pfaff, 2013. "Income Comparisons, Income Adaptation, and Life Satisfaction: How Robust Are Estimates from Survey Data?," SOEPpapers on Multidisciplinary Panel Data Research 555, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Costanza Naguib, 2022. "Financial Turmoil and Earnings Mobility," Diskussionsschriften dp2208, Universitaet Bern, Departement Volkswirtschaft.
    14. Grund, Christian & Martin, Johannes, 2012. "Monetary Reference Points of Managers: An Empirical Investigation of Status Quo Preferences and Social Comparisons," IZA Discussion Papers 7097, Institute of Labor Economics (IZA).
    15. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    happiness; income norm; subjective well-being;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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