London School of Economics EOPP: Economic Organisation and Public Policy Programme LSE
EOPP: Economic Organisation and Public Policy Programme

Abstract for:

Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital

Justina A.V.  Fischer, Benno  Torgler, February 2006
Paper No' DEDPS 46: | Full paper (pdf)
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Keywords: Relative income position; envy; positional concerns; social capital; social norms; happiness

JEL Classification: Z130; H260; I310; D000; D600

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Development Economics
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Abstract:

Research evidence on the impact of relative income position on individual attitudes and behaviour is sorely lacking. Therefore, this paper assesses such positional impact on social capital by applying 14 different measurements to International Social Survey Programme data from 25 countries. We find support for a positional concern effect or ‘envy’ whose magnitude in several cases is quite substantial. The results indicate that such an effect is non-linear. In addition, we find an indication that absolute income level is also relevant. Lastly, changing the reference group (regional versus national) produces no significant differences in the results.