- 18+ aged, general public, 18 nations, 1995-1997
- N = 20771
- Non Response:
- Interview: face-to-face
- Authors's Label
- Relative income
- Our Classification
- Respondents were presented a card with 10 income brackets, that expressed the nations income deciles in local currency.
They self-rated their income category in answer to the question: Here is a scale of incomes. We would like to know in what group your household is, counting all wages, salaries, pensions and other incomes that come in. Just give the letter of the group your household falls into, before taxes and other deductions.
Relative income was measured as the log of the ratio of an individuals absolute income to her country's median income.
Observed Relation with Happiness
-Interaction between relative and absolute income
-log of GDP pc
-Hapiness in the country (dummies for below/above average)
A change in the relative income has a larger effect on happiness than a change in absolute income for almost 88% of the sample.