English title: Who Compares To Whom? The Anatomy of Income Comparisons in Europe

Author(s): Andrew E. Clark - Claudia Senik -

Language: English

Type: Journal article

Year: 2010

Abstract

This article provides unprecedented direct evidence from large-scale survey data on both the intensity (how much?) and direction (to whom?) of income comparisons. Income comparisons are considered to be at least somewhat important by three-quarters of Europeans. They are associated with both lower levels of subjective well-being and a greater demand for income redistribution. The rich compare less and are happier than average when they do, which latter is consistent with relative income theory. With respect to the direction of comparisons, colleagues are the most frequently-cited reference group. Those who compare to colleagues are happier than those who compare to other benchmarks.

Volume: 120

Issue: 544

From page no: 573

To page no: 594

Refereed: Yes

DOI: 10.1111/J.1468-0297.2010.02359.X

Journal: Economic Journal

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