Community, comparisons and subjective well-being in a divided society

Using a South African data set, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income – measured as average income of others in the local residential cluster - enters the househ...

Full description

Bibliographic Details
Main Authors: Kingdon, G, Knight, J
Format: Working paper
Language:English
Published: CSAE 2004
_version_ 1797056484754849792
author Kingdon, G
Knight, J
author_facet Kingdon, G
Knight, J
author_sort Kingdon, G
collection OXFORD
description Using a South African data set, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income – measured as average income of others in the local residential cluster - enters the household’s utility function positively but that income of more distant others (others in the district or province) enters negatively. The ordered probit equations indicate that, as well as comparator groups based on spatial proximity, race-based comparator groups are important in the racially divided South African society. It is also found that relative income is more important to happiness at higher levels of absolute income. Potential explanations of these results, and their implications, are considered.
first_indexed 2024-03-06T19:23:24Z
format Working paper
id oxford-uuid:1ae3b4f9-b798-410c-a961-e4c0457c28cc
institution University of Oxford
language English
last_indexed 2024-03-06T19:23:24Z
publishDate 2004
publisher CSAE
record_format dspace
spelling oxford-uuid:1ae3b4f9-b798-410c-a961-e4c0457c28cc2022-03-26T10:57:16ZCommunity, comparisons and subjective well-being in a divided societyWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:1ae3b4f9-b798-410c-a961-e4c0457c28ccEnglishDepartment of Economics - ePrintsCSAE2004Kingdon, GKnight, JUsing a South African data set, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income – measured as average income of others in the local residential cluster - enters the household’s utility function positively but that income of more distant others (others in the district or province) enters negatively. The ordered probit equations indicate that, as well as comparator groups based on spatial proximity, race-based comparator groups are important in the racially divided South African society. It is also found that relative income is more important to happiness at higher levels of absolute income. Potential explanations of these results, and their implications, are considered.
spellingShingle Kingdon, G
Knight, J
Community, comparisons and subjective well-being in a divided society
title Community, comparisons and subjective well-being in a divided society
title_full Community, comparisons and subjective well-being in a divided society
title_fullStr Community, comparisons and subjective well-being in a divided society
title_full_unstemmed Community, comparisons and subjective well-being in a divided society
title_short Community, comparisons and subjective well-being in a divided society
title_sort community comparisons and subjective well being in a divided society
work_keys_str_mv AT kingdong communitycomparisonsandsubjectivewellbeinginadividedsociety
AT knightj communitycomparisonsandsubjectivewellbeinginadividedsociety