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Subjective Well-Being and Relative Deprivation: An Empirical Link

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  • Conchita D'Ambrosio
  • Joachim R. Frick

Abstract

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

Suggested Citation

  • Conchita D'Ambrosio & Joachim R. Frick, 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," Discussion Papers of DIW Berlin 449, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp449
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    References listed on IDEAS

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    Cited by:

    1. Virag Havasi, 2013. "Financial Situation and Its Consequences on the Quality of Life in the EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 17-35, August.
    2. verme Paolo, 2007. "Relative Deprivation in the Labour ‘Space," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200701, University of Turin.
    3. Walter Bossert & Conchita D’Ambrosio, 2007. "Dynamic Measures of Individual Deprivation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(1), pages 77-88, January.
    4. David Dorn & Justina Fischer & Gebhard Kirchgässner & Alfonso Sousa-Poza, 2008. "Direct democracy and life satisfaction revisited: new evidence for Switzerland," Journal of Happiness Studies, Springer, vol. 9(2), pages 227-255, June.
    5. Inmaculada García & José Molina & María Navarro, 2007. "How Satisfied are Spouses with their Leisure Time? Evidence from Europe," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 546-565, December.
    6. Peter Burton & Shelley Phipps, 2010. "The Well-Being of Immigrant Children and Parents in Canada," Working Papers daleconwp2010-09, Dalhousie University, Department of Economics.
    7. Kamal Kasmaoui, 2020. "What makes Moroccans happy: A micro-data study," Working Papers hal-02956855, HAL.
    8. David Dorn & Justina Fischer & Gebhard Kirchgässner & Alfonso Sousa-Poza, 2007. "Is It Culture or Democracy? The Impact of Democracy and Culture on Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 82(3), pages 505-526, July.
    9. Wunder, Christoph & Schwarze, Johannes, 2006. "Income Inequality and Job Satisfaction of Full-Time Employees in Germany," IZA Discussion Papers 2084, Institute of Labor Economics (IZA).
    10. Ovaska, Tomi & Takashima, Ryo, 2006. "Economic policy and the level of self-perceived well-being: An international comparison," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 308-325, April.
    11. Emma Samman, 2007. "Psychological and Subjective Well-being: A Proposal for Internationally Comparable Indicators," Oxford Development Studies, Taylor & Francis Journals, vol. 35(4), pages 459-486.
    12. Labeaga, José M. & Molina, José Alberto & Navarro, María, 2011. "Deprivation using satisfaction measures in Spain: An evaluation of unemployment benefits," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 287-310, March.
    13. Jose Alberto Molina & Maria Navarro & Ian Walker, 2007. "Mums and their sons; Dads and their daughters: Panel Data Evidence of Parental Altruism across 14 EU Countries," Working Papers 200721, Geary Institute, University College Dublin.
    14. Labeaga, José M. & Molina, José Alberto & Navarro Paniagua, Maria, 2007. "Income Satisfaction and Deprivation in Spain," IZA Discussion Papers 2702, Institute of Labor Economics (IZA).
    15. Shlomo Yitzhaki & Edna Schechtman, 2005. "The properties of the extended Gini measures of variability and inequality," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 401-433.
    16. Claudia Biancotti, 2006. "A Dual-Regime Utility Model for Poverty Analysis," Temi di discussione (Economic working papers) 603, Bank of Italy, Economic Research and International Relations Area.
    17. Jenny Chesters & Jehane Simona & Christian Suter, 2021. "Cross-National Comparison of Age and Period Effects on Levels of Subjective Well-Being in Australia and Switzerland During Volatile Economic Times (2001–2016)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 361-391, February.
    18. DAVID DORN & Justina Fischer & GEBHARD KIRCHGÄSSNER & ALFONSO SOUSA-POZA, 2005. "Is It Culture or Democracy? The Impact of Democracy, Income, and Culture on Happiness," University of St. Gallen Department of Economics working paper series 2005 2005-12, Department of Economics, University of St. Gallen.

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    More about this item

    Keywords

    Relative deprivation; Satisfaction; Subjective well-being; SOEP;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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