Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia

12 Pages Posted: 11 Nov 2008 Last revised: 8 May 2025

See all articles by Alpaslan Akay

Alpaslan Akay

IZA Institute of Labor Economics

Peter Martinsson

University of Gothenburg - Department of Economics and Statistics

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

Akay, Alpaslan and Martinsson, Peter, Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia. IZA Discussion Paper No. 3812, Available at SSRN: https://ssrn.com/abstract=1298255

Alpaslan Akay (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Peter Martinsson

University of Gothenburg - Department of Economics and Statistics ( email )

Box 640
Vasagatan 1, E-building, floor 5 & 6
Göteborg, 40530
Sweden

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