Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 475: Does relative income matter for the very poor? - Evidence from rural Ethiopia

Alpaslan Akay () and Peter Martinsson ()
Additional contact information
Alpaslan Akay: IZA (Institute for the Study of Labor), 53113, Bonn, Germany, Postal: and, Department of Economics., School of Business, Economics and Law, Göteborg University, Box 640, SE 40530 GÖTEBORG
Peter Martinsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: We studied whether relative income has an impact on subjective well-being among extremely poor people. Contrary to the findings in developed countries, we cannot reject the hypothesis that relative income has no impact on subjective well-being in rural areas of northern Ethiopia.

Keywords: Absolute income; relative income; subjective well-being

JEL-codes: D10; I31; I32

12 pages, December 2, 2010

Note: Published in Economics Letters, 2011, Vol. 110, pp. 213-215.

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Published as
Alpaslan Akay and Peter Martinsson, (2011), 'Does relative income matter for the very poor? - Evidence from rural Ethiopia', Economics Letters, vol 110, pages 213-215

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