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Does envy destroy social fundamentals? The impact of relative income position on social capital

By Justina A. V. Fischer and Benno Torgler

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

Topics: HV Social pathology. Social and public welfare. Criminology, HM Sociology
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 2006
OAI identifier: oai:eprints.lse.ac.uk:6640
Provided by: LSE Research Online

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