Well-Being Inequality and Reference Groups - An Agenda for New Research

van Praag, B.M.S.

doi:10.2139/ssrn.1573498

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Well-Being Inequality and Reference Groups - An Agenda for New Research

CESifo Working Paper Series No. 2984

34 Pages Posted: 24 Mar 2010

See all articles by B.M.S. van Praag

B.M.S. van Praag

University of Amsterdam - Faculty of Economics and Business (FEB); IZA Institute of Labor Economics; Tinbergen Institute in Amsterdam; CESifo (Center for Economic Studies and Ifo Institute)

There are 3 versions of this paper

Date Written: March 2010

Abstract

It is argued that the concept of well–being inequality cannot be properly defined without taking the referencing process into account. The reference effect depends on how frequently individuals compare with others and on the degree of social transparency in society. In this paper we employ the reference- extended model for incorporating the concept of happiness inequality in happiness studies.

We plead for an extension of the present happiness paradigm by setting up a new additional agenda for empirical research in order to get quantified knowledge about the referencing process.

Keywords: subjective well being, happiness, inequality, reference group

JEL Classification: D31, D62, D63, I31

Suggested Citation: Suggested Citation

van Praag, Bernard, Well-Being Inequality and Reference Groups - An Agenda for New Research (March 2010). CESifo Working Paper Series No. 2984, Available at SSRN: https://ssrn.com/abstract=1573498 or http://dx.doi.org/10.2139/ssrn.1573498