Status, Happiness, and Relative Income
Author(s) / Creator(s)
Beath, John
FitzRoy, Felix
Abstract / Description
Models of status based on Frank's (1985) count of the number of people with lower conspicuous consumption are inconsistent with the extensive empirical literature on happiness and well-being. The alternative approach to consumption interaction which uses some form of relative income has been developed in various contexts. These predict that a representative agent's well-being will increase with real income or consumption. However, this is again inconsistent with the time-series evidence for advanced economies. In this paper we combine a simple model of relative income with a distribution of ability that correctly predicts both time series results of near constant utility, and the positive, concave crosssectional
relation between income, working time and happiness.
Keyword(s)
Zufriedenheit Wohlstand Einkommen Zufriedenheit Wohlstand Einkommen status happiness relative incomePersistent Identifier
Date of first publication
2007
Is part of series
Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;2658
Citation
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dp2658.pdfAdobe PDF - 174.04KBMD5: de90604119476c22db1a0725df3150ca
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There are no other versions of this object.
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Author(s) / Creator(s)Beath, John
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Author(s) / Creator(s)FitzRoy, Felix
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PsychArchives acquisition timestamp2022-11-17T11:01:18Z
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Made available on2008-06-06
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Made available on2015-12-01T10:32:11Z
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Made available on2022-11-17T11:01:18Z
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Date of first publication2007
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Abstract / DescriptionModels of status based on Frank's (1985) count of the number of people with lower conspicuous consumption are inconsistent with the extensive empirical literature on happiness and well-being. The alternative approach to consumption interaction which uses some form of relative income has been developed in various contexts. These predict that a representative agent's well-being will increase with real income or consumption. However, this is again inconsistent with the time-series evidence for advanced economies. In this paper we combine a simple model of relative income with a distribution of ability that correctly predicts both time series results of near constant utility, and the positive, concave crosssectional relation between income, working time and happiness.en
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Persistent Identifierhttps://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bsz:291-psydok-16425
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Persistent Identifierhttps://hdl.handle.net/20.500.11780/1105
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Persistent Identifierhttps://doi.org/10.23668/psycharchives.8868
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Language of contenteng
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Is part ofIZA Discussion Paper Series No. 2658
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Is part of seriesForschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;2658
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Keyword(s)Zufriedenheitde
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Keyword(s)Wohlstandde
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Keyword(s)Einkommende
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Keyword(s)Zufriedenheitde
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Keyword(s)Wohlstandde
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Keyword(s)Einkommende
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Keyword(s)statusen
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Keyword(s)happinessen
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Keyword(s)relative incomeen
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Dewey Decimal Classification number(s)150
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TitleStatus, Happiness, and Relative Incomeen
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DRO typereport
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Visible tag(s)PsyDok