Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital
Justina A. V. Fischer
Organization for Economic Co-Operation and Development (OECD); Stockholm School of Economics; University of Hohenheim
Yale University - Yale Center for International and Area Studies
LSE STICERD Research Paper No. DEDPS46
Research evidence on the impact of relative income position on individual attitudes and behaviour is sorely lacking. Therefore, this paper assesses such positional impact on social capital by applying 14 different measurements to International Social Survey Programme data from 25 countries. We find support for a positional concern effect or 'envy' whose magnitude in several cases is quite substantial. The results indicate that such an effect is non-linear. In addition, we find an indication that absolute income level is also relevant. Lastly, changing the reference group (regional versus national) produces no significant differences in the results.
Number of Pages in PDF File: 52
JEL Classification: Z130, H260, I310, D000, D600working papers series
Date posted: April 30, 2008
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