Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications

32 Pages Posted: 29 Nov 2015

See all articles by Xi Chen

Xi Chen

Department of Health Policy and Management; Yale University - Department of Economics; Yale University - Yale Institution for Social and Policy Studies; IZA

Abstract

Status concern and the feelings of relative deprivation affect individual behavior and well-being. Traditional norms and the alarming inequality in China have made relative deprivation more and more intense for the Chinese population. This paper reviews empirical literature on China that attempts to test the relative deprivation hypothesis. We review the origins and pathways of relative deprivation, compare its economic measures in the literature, and summarize their applications. Drawing from solid empirical evidence, we discuss important policy implications on redistribution, official regulations and grassroots sanctions, and relative poverty alleviation.

Keywords: inequality, status concern, relative deprivation, well-being, China

JEL Classification: I14, I18, I32, B41

Suggested Citation

Chen, Xi, Status Concern and Relative Deprivation in China: Measures, Empirical Evidence, and Economic and Policy Implications. IZA Discussion Paper No. 9519. Available at SSRN: https://ssrn.com/abstract=2696357

Xi Chen (Contact Author)

Department of Health Policy and Management ( email )

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Yale University - Department of Economics ( email )

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New Haven, CT 06520-8268
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Yale University - Yale Institution for Social and Policy Studies ( email )

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New Haven, CT 06520
United States

HOME PAGE: http://isps.yale.edu/team/xi-chen

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