IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v21y2007i2p169-194.html
   My bibliography  Save this article

Feeling Richer or Poorer than Others: A Cross‐section and Panel Analysis of Subjective Economic Status in Indonesia

Author

Listed:
  • Nattavudh Powdthavee

Abstract

This paper examines what makes us feel richer or poorer than others. It investigates cross‐sectional and longitudinal determinants of individuals’ subjective economic status in Indonesia. Using two waves of Indonesian Family Life Surveys, 1997 and 2000, I show that individuals’ perceptions of where they are on the economic scale are more dependent on a number of socioeconomic characteristics, as well as their attitudes towards their future economic status, than their current spending capacities would suggest. I also find significant, albeit weaker, expenditure and income effects on individuals’ subjective economic status once individual fixed effects are controlled for in the regression.

Suggested Citation

  • Nattavudh Powdthavee, 2007. "Feeling Richer or Poorer than Others: A Cross‐section and Panel Analysis of Subjective Economic Status in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 21(2), pages 169-194, June.
    • Handle: RePEc:bla:asiaec:v:21:y:2007:i:2:p:169-194
    DOI: 10.1111/j.1467-8381.2007.00253.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8381.2007.00253.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-8381.2007.00253.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, "undated". "Measurements of Poverty in Indonesia: 1996, 1999, and Beyond," Working Papers 422, Publications Department.
    2. Nattavudh Powdthavee, 2005. "Unhappiness and Crime: Evidence from South Africa," Economica, London School of Economics and Political Science, vol. 72(287), pages 531-547, August.
    3. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    4. Kapteyn, Arie & Van Praag, Bernard M. S. & Van Herwaarden, Floor G., 1978. "Individual welfare functions and social reference spaces," Economics Letters, Elsevier, vol. 1(2), pages 173-177.
    5. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    6. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Farré, Lídia & Fasani, Francesco, 2013. "Media exposure and internal migration — Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 102(C), pages 48-61.
    2. Danzer, Alexander M. & Dietz, Barbara & Gatskova, Ksenia & Schmillen, Achim, 2014. "Showing off to the new neighbors? Income, socioeconomic status and consumption patterns of internal migrants," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 230-245.
    3. Zheng Fang, 2017. "Panel Quantile Regressions and the Subjective Well-Being in Urban China: Evidence from RUMiC Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 11-24, May.
    4. Nobles, Jenna & Weintraub, Miranda Ritterman & Adler, Nancy E., 2013. "Subjective socioeconomic status and health: Relationships reconsidered," Social Science & Medicine, Elsevier, vol. 82(C), pages 58-66.
    5. Nattavudh Powdthavee, 2009. "How important is rank to individual perception of economic standing? A within-community analysis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(3), pages 225-248, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    2. Senakpon F. A. Dedehouanou & Johan Swinnen & Miet Maertens, 2013. "Does Contracting Make Farmers Happy? Evidence from Senegal," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59, pages 138-160, October.
    3. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
    4. Barrington-Leigh, C.P., 2024. "The econometrics of happiness: Are we underestimating the returns to education and income?," Journal of Public Economics, Elsevier, vol. 230(C).
    5. Tyers, Rod & Rees, Lucy, 2002. "Trade Reform and Macroeconomic Policy in Vietnam," Conference papers 331011, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Andrew E. Clark, 2019. "Born to Be Mild? Cohort Effects Don’t (Fully) Explain Why Well-Being Is U-Shaped in Age," Springer Books, in: Mariano Rojas (ed.), The Economics of Happiness, chapter 0, pages 387-408, Springer.
    7. Ed Diener & Robert Biswas-Diener, 2002. "Will Money Increase Subjective Well-Being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 57(2), pages 119-169, February.
    8. Van Landeghem, Bert, 2012. "A test for the convexity of human well-being over the life cycle: Longitudinal evidence from a 20-year panel," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 571-582.
    9. Ferdi Botha, 2014. "Life Satisfaction and Education in South Africa: Investigating the Role of Attainment and the Likelihood of Education as a Positional Good," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 555-578, September.
    10. Nattavudh Powdthavee, 2010. "How much does money really matter? Estimating the causal effects of income on happiness," Empirical Economics, Springer, vol. 39(1), pages 77-92, August.
    11. Timothy Hinks & Carola Gruen, 2007. "What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 82(2), pages 311-336, June.
    12. Dedehouanou, Senakpon & Maertens, Miet, 2011. "Participation in Modern Agri-Food Supply Chain in Senegal and Happiness," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114447, European Association of Agricultural Economists.
    13. Ada Ferrer-i-Carbonell, 2002. "Income and Well-being," Tinbergen Institute Discussion Papers 02-019/3, Tinbergen Institute.
    14. Brocker, Johannes, 2005. "Necessary and unnecessary parameter restrictions for CDES demand systems," Conference papers 331358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, "undated". "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Working Papers 364, Publications Department.
    16. Fengyu Wu, 2020. "An Examination of the Effects of Consumption Expenditures on Life Satisfaction in Australia," Journal of Happiness Studies, Springer, vol. 21(8), pages 2735-2771, December.
    17. Nattavudh Powdthavee, 2009. "Estimating the Causal Effects of Income on Happiness," Discussion Papers 09/02, Department of Economics, University of York.
    18. Simon Davies & Tim Hinks, 2010. "Crime and Happiness Amongst Heads of Households in Malawi," Journal of Happiness Studies, Springer, vol. 11(4), pages 457-476, August.
    19. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, . "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Journal Article, Publications Department.
    20. Masanori Kuroki, 2013. "Crime Victimization and Subjective Well-Being: Evidence from Happiness Data," Journal of Happiness Studies, Springer, vol. 14(3), pages 783-794, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:21:y:2007:i:2:p:169-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.