Abstract
This paper evaluates the relative impact of different types of benchmarks such as internal and external comparisons on subjective well-being in Turkey. There are few studies on life satisfaction for Turkey and they mostly focus on the impact of socio-demographic effects on subjective well-being. The main purpose of this paper is to investigate how reference group’s self-reported life satisfaction is related to the level of consumption; as well as the level of internal and external comparisons and other socio-economic factors. The paper relies on the Life in Transition Survey (EBRD 2011), a survey conducted in late 2010 jointly by the European Bank for Reconstruction and Development and the World Bank. The survey includes 1,003 observations for Turkey. The emphasis of the paper is based on the concept of income comparisons—both to others in the relevant reference group and to oneself in the past (evaluation) and future (expectation). The main findings are; in addition to household consumption, internal and external comparisons have significant impact on life satisfaction. The impact of comparisons is asymmetric: in most cases under-performing one’s benchmark has a greater effect than out-performing it.
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Notes
A detailed literature review of economics and happiness can be found in Frey and Stutzer (2002).
Especially several scholars observed that per-capita income in western countries like the United States, the United Kingdom, and Belgium, as well as Japan, has risen sharply in recent decades, whereas average happiness has stayed “virtually constant” or has even declined over the same period. See for details: Blanchflower and Oswald (2004), Diener and Oishi (2000), Myers (1993), Kenny (1999, 2004), Easterlin (1974, 1995), and Diener et al. (1995).
It was Festinger (1954) who used the term “social comparison” for the first time.
All above happiness variants are based on responses to a survey question like: “Taking all together, how satisfied or dissatisfied you with your life-as-a-whole are these days?” Combined question types 10-step numeral life satisfaction and 11-step numeral life satisfaction. For a detailed study on life satisfaction and happiness in Turkey see: Selim (2008).
According to Life In Transition Survey (2011), the standard of living is measured using a series of questions regarding household expenditure during the past 12 months based on an comprehensive list of several items including Food, beverages and tobacco; Utilities (electricity, water, gas, heating, fixed line phone); Transportation (public transportation, fuel for car); Education (including tuition, books, kindergarten expenses); Health (including medicines and health insurance); and Clothing and footwear Durable goods (e.g. furniture, household appliances: TV, car, etc.)
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Dumludag, D. Life Satisfaction and Income Comparison Effects in Turkey. Soc Indic Res 114, 1199–1210 (2013). https://doi.org/10.1007/s11205-012-0197-3
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DOI: https://doi.org/10.1007/s11205-012-0197-3