In th is paper we show evidence which suggests th at ch anges in an individual’s relative position affects his subjective well-being. In this sense, our findings are in line with those who argue th at a felicity function sh ould tak e into account both, absolute and relative position. Our result are based on a simple experimental design to discuss whether learning about one’s relative position af fects subjective well-being. Additionally, using non-experimental data we find a significant association between subjective well-being and relative wage.
- relative income,
- subjective well-being
Available at: http://works.bepress.com/maximo_rossi/7/