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dc.contributor.authorFitzRoy, Felix R
dc.contributor.authorNolan, Michael
dc.contributor.authorSteinhardt, Max F.
dc.identifier.citationFitzRoy , F R , Nolan , M & Steinhardt , M F 2011 ' Age, life-satisfaction and relative income : insights from the UK and Germany ' School of Economics & Finance Discussion Paper , no. 1105 , University of St Andrews .en
dc.identifier.otherPURE: 106592698
dc.identifier.otherPURE UUID: 7985f2f9-6ef6-4015-a7ab-256f4af99408
dc.description.abstractWe first confirm previous results with the German Socio-Economic Panel by Layard et al. (2010), and obtain strong negative effects of comparison income. However, when we split the sample by age, we find quite different results for reference income. The effects on life- satisfaction are positive and significant for those under 45, consistent with Hirschman’s (1973) ‘tunnel effect’, and only negative (and larger than in the full sample) for those over 45, when relative deprivation dominates. Thus for young respondents, reference income’s signalling role, indicating potential future prospects, can outweigh relative deprivation effects. Own-income effects are also larger for the older sample, and of greater magnitude than the comparison income effect. In East Germany the reference income effects are insignificant for all. With data from the British Household Panel Survey, we confirm standard results when encompassing all ages, but reference income loses significance in both age groups, and most surprisingly, even own income becomes insignificant for those over 45, while education has significant negative effects.
dc.publisherUniversity of St Andrews
dc.relation.ispartofseriesSchool of Economics & Finance Discussion Paperen
dc.rights(c) the authoren
dc.subjectsubjective life-satisfactionen
dc.subjectcomparison incomeen
dc.subjectreference groupsen
dc.subjectHC Economic History and Conditionsen
dc.subjectH Social Sciences (General)en
dc.titleAge, life-satisfaction and relative income : insights from the UK and Germanyen
dc.typeWorking or discussion paperen
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen

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