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Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia

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  • Akay, Alpaslan

    (University of Gothenburg)

  • Martinsson, Peter

    (University of Gothenburg)

Abstract

We studied whether relative income has an impact on subjective well-being among extremely poor people. Contrary to the findings in developed countries, where relative income has shown a significant and negative impact on subjective well-being, we cannot reject the hypothesis that relative income has no impact on subjective well-being in rural areas of northern Ethiopia.

Suggested Citation

  • Akay, Alpaslan & Martinsson, Peter, 2008. "Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia," IZA Discussion Papers 3812, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3812
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    More about this item

    Keywords

    subjective well-being; relative income; absolute income;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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