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Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications

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  • Chen, Xi

    (Yale University)

Abstract

Status concern and the feelings of relative deprivation affect individual behavior and well-being. Traditional norms and the alarming inequality in China have made relative deprivation more and more intense for the Chinese population. This paper reviews empirical literature on China that attempts to test the relative deprivation hypothesis. We review the origins and pathways of relative deprivation, compare its economic measures in the literature, and summarize their applications. Drawing from solid empirical evidence, we discuss important policy implications on redistribution, official regulations and grassroots sanctions, and relative poverty alleviation.

Suggested Citation

  • Chen, Xi, 2015. "Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications," IZA Discussion Papers 9519, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9519
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Han Yu, 0. "Income Comparison and Subjective Well-Being: Evidence from Self-Perceived Relative Income Data from China," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 0, pages 1-37.
    2. Xiaoyan Lei & Yan Shen & James P. Smith & Guangsu Zhou, 2018. "Life satisfaction in China and consumption and income inequalities," Review of Economics of the Household, Springer, vol. 16(1), pages 75-95, March.
    3. Chenhong Peng & Paul S. F. Yip & Yik Wa Law, 2020. "What Factors Beyond Economic Poverty Lead People in High-income Societies to Feel Poor? Evidence from Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 991-1027, December.
    4. Asadullah, M. Niaz & Xiao, Saizi & Yeoh, Emile, 2018. "Subjective well-being in China, 2005–2010: The role of relative income, gender, and location," China Economic Review, Elsevier, vol. 48(C), pages 83-101.
    5. Han Yu, 2020. "Income Comparison and Subjective Well-Being: Evidence from Self-Perceived Relative Income Data from China," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(4), pages 636-672, October.

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    More about this item

    Keywords

    well-being; relative deprivation; status concern; inequality; China;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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