November 2008

IZA DP No. 3812: Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia

published in: Economics Letters, 2011, 110(3), 213-215

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