Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia
12 Pages Posted: 11 Nov 2008 Last revised: 8 May 2025
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.
Keywords: subjective well-being, relative income, absolute income
JEL Classification: D10, I31, I32
Suggested Citation: Suggested Citation
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