Gender effect on relative concerns

Abstract

This thesis investigates whether there is a gender difference on the relative income effect, evaluated using subjective well-being data as a proxy for individual utility. The data set we use is a cross section of SOEP (the Socio-Economic Panel) of Germany collected during the last decade (2010-2019). We estimate subjective well-being regressions in which we control for the absolute level of income, relative level of income, as well as other determinants of well-being including age, years of education, family variables among others. We split the data in two parts by gender. Then, we analyze how females and males compare their income with other females and males. Our result suggest that females compare more with females compared to what they do with other comparable males. However, males compare more with other males, but they do not compare with other females. Overall, we conclude that males are more affected by income comparisons than that of females. This information should be used more in welfare related public policies.