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Learning about one's relative position and subjective well-being

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In this article we show evidence which suggests that changes in an individual's relative position affects his subjective well-being (SWB). In this sense, our findings are in line with those who argue that a felicity function should take into account both absolute and relative position. Our results are based on a simple experimental design to discuss whether learning about one's relative position affects SWB. Additionally, using nonexperimental data we find a significant association between SWB and relative wage.
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Document Type: Research Article

Affiliations: 1: Facultad de Economía, Universidad de Vigo, Spain 2: Departamento de Economía, Universidad de Uruguay, Uruguay

Publication date: 2007-07-01

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