Arbeitspapier
When Experienced and Decision Utility Concur: The Case of Income Comparisons
While there is now something of a consensus in the literature on the economics of happiness that income comparisons to others help determine subjective wellbeing, debate continues over the relative importance of own and reference-group income, in particular in research on the Easterlin paradox. The variety of results in this domain have produced some scepticism regarding happiness analysis, and in particular with respect to the measurement of reference-group income. We here use data from an original Internet survey in Japan to compare the results from happiness regressions to those from hypothetical-choice experiments. The trade-off between own and others' income (showing the importance of absolute and relative income) is similar in these two sets of results. This kind of validation of experienced utility via direct comparison with decision utility remains rare in this literature.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 9189
- Classification
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Wirtschaft
Personal Income, Wealth, and Their Distributions
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Wage Level and Structure; Wage Differentials
- Subject
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satisfaction
income comparisons
reference-group income
discrete-choice experiments
- Event
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Geistige Schöpfung
- (who)
-
Clark, Andrew E.
Senik, Claudia
Yamada, Katsunori
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Clark, Andrew E.
- Senik, Claudia
- Yamada, Katsunori
- Institute for the Study of Labor (IZA)
Time of origin
- 2015
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