Looking up and down and round and round: a theoretical–empirical, individual-level analysis of income comparisons

IF 3.2 2区经济学 Q1 ECONOMICS

Socio-Economic Review Pub Date : 2023-10-04 DOI:10.1093/ser/mwad054

Alex Lehr

引用次数: 0

Abstract

Abstract Income comparisons imply that individuals care not only about the absolute value of their income but also about its relative value. Such comparisons likely have significant societal consequences while also challenging standard neoclassical economic theory. I argue that a better understanding of income comparisons requires a more systematic, theoretical engagement with three problems: (1) the problem of reference group selection, (2) the problem of orientation, and (3) the problem of functional form. Income comparisons are commonly attributed to interdependent preferences, in particular to envy. I propose an alternative theoretical approach in which comparisons are a rational means for individuals to improve upon imperfect information about their current earning potential. I test the empirical implications of both approaches for reference group selection, orientation, and functional form using individual-level data from the Netherlands. The evidence suggests that imperfect information drives comparisons, but interdependent preferences also play a role.

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上上下下，周而复始:收入比较的理论-实证，个人层面的分析

收入比较意味着个人不仅关心其收入的绝对值，而且关心其相对价值。这种比较可能会产生重大的社会后果，同时也挑战了标准的新古典经济理论。我认为，要更好地理解收入比较，需要对三个问题进行更系统的理论研究:(1)参考群体选择问题，(2)取向问题，(3)功能形式问题。收入比较通常归因于相互依赖的偏好，尤其是嫉妒。我提出了另一种理论方法，在这种方法中，比较是一种理性的手段，个人可以利用有关其当前收入潜力的不完全信息来改进。我用来自荷兰的个人层面的数据测试了这两种方法对参考群体选择、取向和功能形式的经验含义。有证据表明，不完善的信息会推动比较，但相互依赖的偏好也会发挥作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Socio-Economic Review Multiple-

CiteScore

6.80

自引率

10.80%

发文量

期刊介绍： Originating in the Society for the Advancement of Socio-Economics (SASE), Socio-Economic Review (SER) is part of a broader movement in the social sciences for the rediscovery of the socio-political foundations of the economy. Devoted to the advancement of socio-economics, it deals with the analytical, political and moral questions arising at the intersection between economy and society. Articles in SER explore how the economy is or should be governed by social relations, institutional rules, political decisions, and cultural values. They also consider how the economy in turn affects the society of which it is part, for example by breaking up old institutional forms and giving rise to new ones. The domain of the journal is deliberately broadly conceived, so new variations to its general theme may be discovered and editors can learn from the papers that readers submit. To enhance international dialogue, Socio-Economic Review accepts the submission of translated articles that are simultaneously published in a language other than English. In pursuit of its program, SER is eager to promote interdisciplinary dialogue between sociology, economics, political science and moral philosophy, through both empirical and theoretical work. Empirical papers may be qualitative as well as quantitative, and theoretical papers will not be confined to deductive model-building. Papers suggestive of more generalizable insights into the economy as a domain of social action will be preferred over narrowly specialized work. While firmly committed to the highest standards of scholarly excellence, Socio-Economic Review encourages discussion of the practical and ethical dimensions of economic action, with the intention to contribute to both the advancement of social science and the building of a good economy in a good society.