Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital

Fischer, Justina  A. V.; Torgler, Benno

Download This Paper

Open PDF in Browser

Add Paper to My Library

Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital

LSE STICERD Research Paper No. DEDPS46

52 Pages Posted: 30 Apr 2008

See all articles by Justina A. V. Fischer

Justina A. V. Fischer

Organization for Economic Co-Operation and Development (OECD); Stockholm School of Economics; University of Hohenheim

Benno Torgler

Yale University - Yale Center for International and Area Studies

There are 2 versions of this paper

Date Written: February 2006

Abstract

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.

JEL Classification: Z130, H260, I310, D000, D600

Suggested Citation: Suggested Citation

Fischer, Justina A.V. and Torgler, Benno, Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital (February 2006). LSE STICERD Research Paper No. DEDPS46, Available at SSRN: https://ssrn.com/abstract=1127015