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  • 1
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.
    Keywords: D63 ; J28 ; J31 ; ddc:330 ; fair income ; subjective well-being ; quits ; SOEP
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Helsinki: The United Nations University World Institute for Development Economics Research (UNU-WIDER)
    Publication Date: 2018-11-16
    Description: We examine the measurement of individual poverty in an intertemporal context. Our aim is to capture the importance of persistence in a state of poverty and we characterize a corresponding individual intertemporal poverty measure. Our first axiom requires that intertemporal poverty is identical to static poverty in the degenerate single-period case. The remaining two properties express decomposability requirements within poverty spells and across spells in order to reflect the persistence issue. In addition, we axiomatize an aggregation procedure to obtain an intertemporal poverty measure for societies and we illustrate our new index with an application to EU countries.
    Keywords: C43 ; D63 ; I32 ; ddc:330 ; Intertemporal poverty measurement ; equity
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 3
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    Helsinki: The United Nations University World Institute for Development Economics Research (UNU-WIDER)
    Publication Date: 2018-11-16
    Description: We provide an axiomatic treatment of the measurement of economic insecurity, assuming that individual insecurity depends on the current wealth level and its variations experienced in the past. The first component plays the role of a buffer stock to rely on in case of an adverse future event. The second component determines the confidence an individual has on his ability to overcome a loss in the future. Experiences in the recent past are given higher weight than experiences that occurred in the more distant past. Two classes of measures are characterized with sets of plausible and intuitive axioms.
    Keywords: D63 ; ddc:330 ; insecurity ; wealth streams ; economic index numbers
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-06-22
    Description: Given any income distribution, to each income we associate a subgroup containing all persons whose incomes are not higher than this income and a person?s target shortfall in a subgroup is the gap between the subgroup highest income and his own income. We then develop an absolute target shortfall ordering, which, under constancy of population size and total income, implies the Lorenz and Cowell-Ebert complaint orderings. Under the same restrictions, one distribution dominates the other by this ordering if and only if the dominated distribution can be obtained from the dominant one by a sequence of rank preserving progressive transfers, where each transfer is shared equally by all persons poorer than the donor of the transfer. The relationship of the ordering with the absolute deprivation and differential orderings, and its consistency with ranking of distributions by absolute target shortfall indices are explored. Well-known inequality indices like the absolute Gini index and the standard deviation are interpreted as absolute target shortfall indices. Finally, the possibility of a relative target shorfall ordering is also discussed.
    Keywords: D63 ; D31 ; ddc:330 ; Target shortfall orderings ; transfer ; indices ; Sozialtransfer ; Einkommensverteilung ; Disparitätsmass ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 5
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-06-22
    Description: This paper explores the relationship between two well-established concepts of measuring individual well-being: the concept of happiness, i.e. self-reported level of satisfaction with income and life, and relative deprivation/satisfaction, i.e. the gaps between the individual?s income and the incomes of all individuals richer/poorer than him. Operationalizing both concepts using micro panel data from the German Socio-Economic Panel, we provide empirical evidence for subjective well-being depending more on relative satisfaction than on absolute levels of income. This finding holds even after controlling for other influential factors in a multivariate setting.
    Keywords: I31 ; D31 ; D63 ; ddc:330 ; Relative Deprivation ; Satisfaction ; SubjectiveWell-Being ; SOEP
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 6
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-06-22
    Description: This paper develops an axiomatic approach to the measurement of social exclusion. At the individual level, social exclusion is viewed in terms of deprivation of the person concerned with respect to different functionings in the society. At the aggregate level we treat social exclusion as a function of individual exclusions. The class of subgroup decomposable social exclusion measures using a set of independent axioms is identified. We then look at the problem of ranking exclusion profiles by exclusion dominance principle under certain restrictions. Finally, applications of decomposable and non-decomposable measures suggested in the paper using European Union and Italian data are also considered.
    Keywords: D63 ; ddc:330 ; Social Exclusion ; Axioms ; Characterization ; Dominance ; Application ; Policy ; Soziale Isolation ; Messung ; Disparitätsmass ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 7
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-06-22
    Description: This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: the individual?s own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.
    Keywords: D31 ; I31 ; D63 ; ddc:330 ; Interdependent Preferences ; Inequality Aversion ; Status ; Subjective Well-Being ; SOEP ; Lebenszufriedenheit ; Nutzen ; Einkommensverteilung ; Soziale Mobilität ; Schätzung ; Deutschland
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 8
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2018-01-31
    Description: This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.
    Keywords: D63 ; I31 ; D31 ; ddc:330 ; Interdependent Preferences ; Inequality Aversion ; Status ; Subjective Well-Being ; SOEP
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 9
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We review the survey and experimental findings in the literature on attitudes to income inequality. We interpret the latter as any disparity in incomes between individuals. We classify these findings into two broad types of individual attitudes towards the income distribution in a society: the normative and the comparative view. The first can be thought of as the individual's disinterested evaluation of income inequality; on the contrary, the second view reflects self-interest, as individual's inequality attitudes depend not only on how much income they receive but also on how much they receive compared to others. We conclude with a number of extensions, outstanding issues and suggestions for future research.
    Keywords: C91 ; D31 ; D63 ; I31 ; ddc:330 ; attitudes ; distribution ; experiments ; income inequality ; life satisfaction ; reference groups
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 10
    Publication Date: 2013-03-05
    Description: We define and experimentally test a public provision mechanism that meets three basic ethical requirements and allows community members to influence, via monetary bids, which of several projects is implemented. For each project, participants are assigned personal values, which can be positive or negative. We provide either complete or only private information about others' personal values. This produces two distinct public provision games which are experimentally implemented and analysed for various projects. In spite of the complex experimental task, participants do not rely on truth-telling as an obvious and simple heuristic whose general acceptance would result in fair and efficient outcomes. Rather, they yield to strategic underbidding. Although underbidding is affected by projects' characteristics, the provision mechanism seems quite functional.
    Keywords: C91 ; C72 ; D63 ; ddc:330 ; Public Provision ; Procedural Fairness ; Experiment ; Öffentliches Gut ; Spieltheorie ; Gerechtigkeit ; Gemeinschaft ; Projektbewertung ; Test
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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