Direct evidence on income comparisons and their welfare effects

• Published in: Journal of economic behavior & organization Vol. 72; no. 1; pp. 408 - 424
• Main Author: Senik, Claudia
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.10.2009; Elsevier; Elsevier Sequoia S.A
• Series: Journal of Economic Behavior & Organization
• Subjects: Benchmarking; Benchmarks; Comparative analysis; Demand for income redistribution; Impact analysis; Income; Income comparisons; Income redistribution; Internal and external benchmarks; Quantitative Finance; Social comparison; Studies; Subjective well-being; Subjective well-being Income comparisons Demand for income redistribution Internal and external benchmarks Transition; Subjective wellbeing; Subjectivity; Transition; Welfare; Welfare economics; Welfare effects; Well-being; D63; Subjective well-being; D31; P3; I31; C25; Internal and external benchmarks; J31; Demand for income redistribution; O57; Transition; Income comparisons; Z13

This paper provides direct evidence that income comparisons exert a significant impact on subjective well-being. It also evaluates the relative importance of different types of benchmarks. Internal comparisons to one's own past living standard outweigh any other comparison benchmarks. Local com...