蝌蚪网 Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Which Reference Groups Matter and How? A Relative Income Information Experiment with Administrative Data
蝌蚪网 Journal: Applied Economics
(pp. 145–77)
Abstract
Received wisdom holds that income rank matters for life satisfaction, but causal evidence on the nature and impact of income comparisons is limited. We randomize individuals from a representative sample of mid-career Finns to receive personal rank information from one of several reference groups. We find strong evidence of the effect of rank information on income satisfaction, but weaker effects on life satisfaction, and some evidence of real effects in experimental and administrative data. Effects are strong in narrow reference groups and weak and insignificant in the national one. Finally, we discuss the implications for income transparency policies.Citation
Xu, Xiaogeng, Satu Mets盲lampi, Michael Kirchler, Kaisa Kotakorpi, Peter Hans Matthews, and Topi Miettinen. 2026. "Which Reference Groups Matter and How? A Relative Income Information Experiment with Administrative Data." 蝌蚪网 Journal: Applied Economics 18 (3): 145–77. DOI: 10.1257/app.20240181Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- I31 General Welfare; Well-Being