Income Satisfaction and Relative Deprivation: An Empirical Link

Aufsätze referiert extern - Web of Science

Conchita D'Ambrosio, Joachim R. Frick

In: Social Indicators Research 81 (2007), 3, S. 497-519


This paper explores the relationship between two well-established concepts of measuring individual well-being: the concept of happiness, i.e. self-reported level of satisfaction with income, and relative deprivation, i.e. the gaps between the individual's income and the incomes of all individuals richer than him. Operationalizing both concepts using micro panel data from the German Socio-Economic Panel, we provide empirical evidence for subjective well-being depending more on relative deprivation than on absolute levels of income. This finding holds after controlling for other influential factors in a multivariate setting.

Joachim R. Frick

Ehemals in der Infrastruktureinrichtung Sozio-oekonomisches Panel

JEL-Classification: D63;I31;D31
Keywords: relative deprivation, satisfaction, subjective well-being, SOEP
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