Does Relative Income Matter for the Very Poor?: Evidence from Rural Ethiopia

This was created in partnership with Environment for Development .

Abstract

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 thehypothesis that relative income has no impact on subjective well-being in rural areas of northern Ethiopia.