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Stressful integration

  • Stark, Oded

This paper considers the integration of economies as a merger of populations. The premise is that the merger of groups of people alters their social landscape and their comparators. The paper identifies the effect of the merger on aggregate distress. A merger is shown to increase aggregate distress, measured as total relative deprivation: the social distress of a merged population is greater than the sum of the social distress of the constituent populations when apart. Physiological evidence from neighboring disciplines points to an increase in societal stress upon merger.

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File URL: https://econstor.eu/bitstream/10419/77913/1/749857951.pdf
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Paper provided by University of Tuebingen, Faculty of Economics and Social Sciences in its series University of Tuebingen Working Papers in Economics and Finance with number 56.

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Date of creation: 2013
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Handle: RePEc:zbw:tuewef:56
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  1. Clark, Andrew E. & Frijters, Paul & Shields, Michael A., 2007. "Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," IZA Discussion Papers 2840, Institute for the Study of Labor (IZA).
  2. Richard A. Easterlin & Anke C. Zimmermann, 2008. "Life Satisfaction and Economic Conditions in East and West Germany Pre- and Post-Unification," SOEPpapers on Multidisciplinary Panel Data Research 95, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Oded Stark & Walter Hyll, 2011. "On the Economic Architecture of the Workplace: Repercussions of Social Comparisons among Heterogeneous Workers," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 349 - 375.
  4. Oded Stark & Franz Rendl & Marcin Jakubek, 2012. "The merger of populations, the incidence of marriages, and aggregate unhappiness," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 331-344, April.
  5. David Andolfatto, 2002. "A Theory of Inalienable Property Rights," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 382-393, April.
  6. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 531-555.
  7. Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
  8. Stark, Oded & Fan, C. Simon, 2009. "A Theory of Migration as a Response to Occupational Stigma," Discussion Papers 55363, University of Bonn, Center for Development Research (ZEF).
  9. Luttmer, Erzo F. P., 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," Working Paper Series rwp04-029, Harvard University, John F. Kennedy School of Government.
  10. Fuchs-Schundeln, Nicola & Alesina, Alberto, 2007. "Good-Bye Lenin (Or Not?): The Effect of Communism on People's Preferences," Scholarly Articles 4553032, Harvard University Department of Economics.
  11. Oded Stark & Walter Hyll & Yong Wang, 2010. "Endogenous Selection of Comparison Groups, Human Capital Formation, and Tax Policy," Vienna Economics Papers 1009, University of Vienna, Department of Economics.
  12. Giacomo Corneo, 2001. "Inequality and the State: Comparing US and German Preferences," Annals of Economics and Statistics, GENES, issue 63-64, pages 283-296.
  13. Oded Stark, 2010. "Looking at the Integration of Nations through the Lens of the Merger of Populations: Preliminary Superadditivity and Impossibility Results," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 661-675, December.
  14. Stark, Oded & Fan, C. Simon, 2011. "Migration for degrading work as an escape from humiliation," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 241-247, March.
  15. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
  16. BOSSERT, Walter & D’AMBROSIO, Conchita, 2004. "Reference Groups and Individual Deprivation," Cahiers de recherche 13-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  17. repec:adr:anecst:y:2001:i:63-64 is not listed on IDEAS
  18. repec:adr:anecst:y:2001:i:63-64:p:14 is not listed on IDEAS
  19. Andrew E. Clark & Claudia Senik, 2009. "Who compares to whom? The anatomy of income comparisons in Europe," PSE Working Papers halshs-00586036, HAL.
  20. John D. Hey & Peter J. Lambert, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 567-573.
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