People exhibit distinct preferences for relative versus absolute income gains
the verdict
SUPPORTED
the evidence backs this
confidence 84/100
Empirical studies confirm that individuals are sensitive to both absolute and relative income measures, evaluating their well-being based on how their earnings compare to others as well as their own absolute purchasing power.
Evidence for · 2
How Income Influences Health: Decomposition Based on Absolute Income and Relative Income Effects
2021 · cited by 28
This study decomposes income into absolute and relative components to examine their distinct impacts on health outcomes.
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More for · 1
Absolute Income, Relative Income, and Happiness
2005 · cited by 7
This paper investigates how both absolute and relative income levels independently correlate with individual self-reported happiness.