Powdthavee, Nattavudh (2009) How important is rank to individual perception of economic standing? A within-community analysis. The Journal of Economic Inequality, 7 (3). pp. 225-248. doi:10.1007/s10888-008-9076-1 ISSN 1569-1721.

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Abstract

Using the Indonesia Family Life Survey data, this paper is the first of its kind to explore empirically whether rank-position within one’s community matters to individual perception of where he or she stands on the self-defined economic ladder. By applying a multi-level modeling equation approach on responses to the subjective economic ladder (SEL) question, I find that it is not the mean income or expenditure of a reference group that affects SEL but rather the individual’s ordinal ranking within a reference group (for example, the individual is from the 5th or 40th richest household in the community). Consistent with Hirsch (Hirsch, F.: Social limitation to growth. Harvard University Press, Cambridge (1976)), SEL depends significantly more on the rank-position of the positional goods and less on the nonpositional goods owned by the individual.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	The Journal of Economic Inequality
Publisher:	Springer
ISSN:	1569-1721
Official Date:	2009
Dates:	Date Event 2009 Published
Volume:	7
Number:	3
Page Range:	pp. 225-248
DOI:	10.1007/s10888-008-9076-1
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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