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| Kenichi Shiraishi, Kazuto Sumita, Kazuki Kamimura, Shohei Okamoto and Kohei Komamura |
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| ''Comparison income and subjective well-being: Evidence from a nationwide panel survey in Japan'' |
| ( 2026, Vol. 0 No.0 ) |
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| This study conducts a social comparison of income in Japan and is the first to consider geographical distance in relation to comparison income. The results of a fixed-effects ordered logit model analysis show that comparison income is negatively correlated with life satisfaction. Therefore, our study provides evidence for the relative income hypothesis. Furthermore, income comparison is not symmetric, in line with the idea proposed by Duesenberry in 1949. Therefore, individuals may feel a sense of relative deprivation when others earn a higher income. Conversely, there is a lack of relative satisfaction when others earn a lower income. These findings indicate that policies promoting the equitable distribution of economic resources can potentially enhance the well-being of the Japanese population. |
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| Keywords: Life satisfaction, Fixed effects, Inverse distance, Comparison income, Social comparison |
JEL: I3 - Welfare and Poverty: General
D6 - Welfare Economics: General |
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| Manuscript Received : Nov 26 2023 | | Manuscript Accepted : Jul 13 2026 |
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