SOCIAL COMPARISON AND SUBJECTIVE WELL-BEING: DOES THE HEALTH OF OTHERS MATTER?
Article first published online: 9 MAY 2011
© 2011 The Author. Bulletin of Economic Research © 2011 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research.
Bulletin of Economic Research
Volume 64, Issue 1, pages 31–55, January 2012
How to Cite
Carrieri, V. (2012), SOCIAL COMPARISON AND SUBJECTIVE WELL-BEING: DOES THE HEALTH OF OTHERS MATTER?. Bulletin of Economic Research, 64: 31–55. doi: 10.1111/j.1467-8586.2011.00393.x
- Issue published online: 12 DEC 2011
- Article first published online: 9 MAY 2011
- health condition;
- social comparison;
- subjective well-being
The importance of social comparison in shaping individual utility has been widely documented by subjective well-being literature. So far, income and unemployment have been the main dimensions considered in social comparison. This paper aims to investigate whether subjective well-being is influenced by inter-personal comparison with respect to health. Thus, we study the effects of the health of others and relative health hypotheses on two measures of subjective well-being: happiness and subjective health. Using data from the Italian Health Conditions survey, we show that a high incidence of chronic conditions and disability among reference groups negatively affects both happiness and subjective health. Such effects are stronger among people in the same condition. These results, robust to different econometric specifications and estimation techniques, suggest the presence of some sympathy in individual preferences with respect to health and reveal that other people's health status serves as a benchmark to assess one's own health condition.