Relative Deprivation and Hey and Lambert’s Motivation
Mixed Methods Evidence from Rio de Janeiro
Keywords:
relative deprivation, upward comparisons, inequality, educationAbstract
Hey and Lambert (1980) provided an interpretation of indices of relative deprivation in terms of interpersonal comparisons: the indices would quantify harmful feelings of frustration, inadequacy, and inferiority arising from looking upward to better-off others. A growing body of literature has followed this interpretation in quantitative studies which indeed typically reveal a negative association between relative deprivation and key social outcomes such as happiness, health, and education. Yet, evidence able to directly link a negative coefficient of relative deprivation to the mechanisms deflating and harmful for the self, which underlie Hey and Lambert’s interpretation, is currently lacking. We fill this gap by conducting a mixed-method study. Using data from three waves of Brazilian high-stake secondary education exams for the state of Rio de Janeiro (N = 245; 555), we first analyse exam scores in econometric models where absolute income and relative deprivation are jointly employed as explanatory variables. Next, we interpret and expand upon our quantitative results using primary data collected via semi-structured interviews and focus group discussions with 30 local secondary school teachers. In conformity with Hey and Lambert’s interpretation, we find robust negative coefficients for relative deprivation, which the teachers explained by reporting the detrimental effects of lower socioeconomic status and upward comparisons on pupils’ self-esteem, motivation, and aspirations.
References
Abel, A.B. 1990 “Asset Prices under Habit Formation and Catching Up with the Joneses”, American Economic Review 80(2): 38–42.
Akerlof, G.A. 1997 “Social Distance and Social Decisions”, Econometrica 65(5): 1005–1027
—–, and J.L. Yellen 1990 “The Fair WageEffort Hypothesis and Unemployment”, Quarterly Journal of Economics 105(2): 255–284. doi.org/10.2307/2937787
Aronsson, T., and O. Johansson-Stenman 2008 “When the Joneses’ Consumption Hurts: Optimal Public Good Provision and Nonlinear Income Taxation”, Journal of Public Economics 92(5–6): 986–997. doi.org/10.1016/j.jpubeco.2007.12.007
—–, and O. Johansson-Stenman 2010 “Positional Concerns in an OLG Model: Optimal Labor and Capital Income Taxation”, International Economic Review 51(4): 1071–1095. doi.org/10.1111/j.1468-2354.2010.00611.x
Bagwell, L.S., and B.D. Bernheim 1996 “Veblen Effects in a Theory of Conspicuous Consumption”, American Economic Review 86(3): 349–373.
Banerjee, A., and T. Piketty 2005 “Top Indian Incomes, 1922–2000”, The World Bank Economic Review 19(1): 1–20. doi.org/10.1093wber/lhi001
Bilancini, E., and L. Boncinelli 2012 “Redistribution and the Notion of Social Status”, Journal of Public Economics 96(9–10): 651–657. doi.org/10.1016/j.jpubeco.2012.05.007
Boskin, M.J., and E. Sheshinski 1978 “Optimal Redistributive Taxation when Individual Welfare Depends Upon Relative Income”, Quarterly Journal of Economics 92(4): 589–601. doi.org/10.2307/1883177
Bossert, W., and C. D’Ambrosio 2014 “Proximity-Sensitive Individual Deprivation Measures”, Economics Letters 122(2): 125–128. doi.org/10.1016/j.econlet.2013.11.009
Bottan, N.L., and R. Perez-Truglia 2022 “Choosing your pond: location choices and relative income”, Review of Economics and Statistics 104(5): 1010–1027. doi.org/10.1162/rest_a_00991
Bourguignon, François 1999 “Absolute Poverty, Relative Deprivation, and Social Exclusion”, in G. Kochendörfer-Lucius and B. Pleskovic (Eds.) Inclusion, Justice and Poverty Reduction, Villa Borsig Workshop Series. Berlin: German Foundation for International Development. pp. 1-4.
Chen, E., and L.Q. Paterson 2006 “Neighborhood, family, and subjective socioeconomic status: how do they relate to adolescent health?”, Health Psychology 25(6): 704–714. doi.org/10.1037/0278-6133.25.6.704
Clark, A.E., P. Frijters, and M.A. Shields 2008 “Relative Income, Happiness, and Utility: an Explanation for the Easterlin Paradox and Other Puzzles”, Journal of Economic Literature 46(1): 95–144. doi.org/10.1257/jel.46.1.95
—–, D. Masclet, and M.C. Villeval 2010 “Effort and comparison income: Experimental and survey evidence”, ILR Review 63(3): 407–426. doi.org/10.1177/001979391006300303
—-, and C. D’Ambrosio 2015 “Chapter 13 – Attitudes to Income Inequality: Experimental and Survey Evidence”, in A.B. Atkinson and F. Bourguignon (Eds.) Handbook of Income Distribution Volume 2. North-Holland: Elsevier. pp. 1147–1208. doi.org/10.1016/B978-0-444-59428-0.00014-X
Cole, H.L., G.J. Mailath, A. Postlewaite 1992 “Social Norms, Savings Behavior, and Growth”, Journal of Political Economy 100(6): 1092–1125. doi.org/10.1086/261855
Cordeiro, L. 2014 “Sobre a inadequação da metodologia de cálculo das notas do Sisu”, Educação & Sociedade 35(126): 293–320. doi.org/10.1590/S0101-73302014000100017
Corneo, G., and O. Jeanne 1997 “Conspicuous consumption, snobbism and conformism”, Journal of Public Economics 66(1): 55–71. doi.org/10.1016/S0047-2727(97)00016-9
Cowell, F.A. 2011 Measuring inequality New York: Oxford University Press.
Destin, M., and D. Oyserman 2009 “From Assets to School Outcomes: How Finances Shape Children’s Perceived Possibilities and Intentions”, Psychological Science 20(4): 414–418. doi.org/10.1111/j.1467-9280.2009.02309.x
—– 2010 “Incetivizing Education: Seeing Schoolwork as an Investment, not a Chore”, Journal of Experimental Social Psychology 46(5): 846–849. doi.org/10.1016/j.jesp.2010.04.004
Direr, A. 2001 “Interdependent Preferences and Aggregate Saving”, Annales d’Economie et de Statistique, ENSAE 63–64: 297–308.
Duesenberry, J.S. 1949 Income, Saving and the Theory of Consumer Behaviour Cambridge, MA: Harvard University Press.
Elacqua, G., and L. Marotta 2020 “Is working one job better than many? Assessing the impact of multiple school jobs on teacher performance in Rio de Janeiro”, Economics of Education Review 78: 102015
Elgar, F.J., B. De Clercq, C.W. Schnohr, P. Bird, K.E. Pickett, T. Torsheim, F. Hofmann, and C. Currie 2013 “Absolute and relative family affluence and psychosomatic symptoms in adolescents”, Social Science & Medicine 91: 25–31. doi.org/10.1016/j.socscimed.2013.04.030
Emerson, P.M., and A.P. Souza 2008 “Birth order, child labor, and school attendance in Brazil”, World Development 36(9), 1647–1664. doi.org/10.1016/j.worlddev.2007.09.004
Esposito, L. 2010 “Upper boundedness for the measurement of relative deprivation”, Review of Income and Wealth 56(3): 632–639. doi.org/10.1111/j.1475-4991.2010.00396.x
—– 2018 “Relative Deprivation and Satisfaction: Theoretical Approaches”, in Conchita D’Ambrosio (Ed.) The Handbook of Research on Economic and Social Well-Being London: Edward Elgar. pp. 339–355.
—–, and A. Villaseñor 2019 “Relative deprivation and school enrolment. Evidence from Mexico”, Review of Income and Wealth 65(1): 166–186. doi.org/10.1111/roiw.12344
Filmer, D., and L.H. Pritchett 2001 “Estimating wealth effects without expenditure data — or tears: an application to educational enrollments in states of India”, Demography 38(1): 115–132. doi.org/10.1353/dem.2001.0003
Frank, R.H. 1985 “The Demand for Unobservable and other Nonpositional Goods”, American Economic Review 75(1): 101–116.
Hirsch, F. 1976 Social Limits to Growth Cambridge, MA: Harvard University Press.
Hopkins, E., and T. Kornienko 2004 “Running to Keep in the Same Place: Consumer Choices as a Game of Status”, American Economic Review 94(4): 1085–1107. doi.org/10.1257/0002828042002705
Karadja, M., J. Mollerstrom, D. Seim 2017 “Richer (and holier) than thou? The effect of relative income improvements on demand for redistribution”, Review of Economics and Statistics 99(2): 201–212. doi.org/10.1162/REST_a_00623
Kim, J. 2020 “Does Relative Deprivation within Schools Influence Adolescent Depression?”, Society and Mental Health 11(3): 201–216. doi.org/10.1177/2156869320959396
Kolenikov, S., and G. Angeles 2009 “Socioeconomic status measurement with discrete proxy variables: Is principal component analysis a reliable answer?”, Review of Income and Wealth 55(1): 128–165. doi.org/10.1111/j.1475-4991.2008.00309.x
Kudrna, L., A. Furnham, and V. Swami 2010 “The Influence of Social Class Salience on Selfassessed Intelligence”, Social Behavior and Personality 38(6): 859–864. doi.org/10.2224/sbp.2010.38.6.861
Lambert, P.J. 2002 The Distribution and Redistribution of Income Manchester: Manchester University Press.
Layard, R. 1980 “Human satisfaction and public policy”, Economic Journal 90(360): 737–750.
Leibenstein, H. 1975 “The Economic Theory of Fertility Decline”, Quarterly Journal of Economics 89(1): 1–31. doi.org/10.2307/1881706
Marmot, M. 2005 “Social determinants of health inequalities”, The Lancet 365(9464): 1099–1104. doi.org/10.1016/S0140-6736(05)71146-6
Marx, K. 1849 “Wage Labour and Capital”, in K. Marx and F. Engels (Eds.) Selected Works, Vol. 1 Moscow: Progress Publishers, pp. 142–174.
Mayer, S.E. 2001 “How did the Increase in Economic Inequality between 1970 and 1990 affect Children’s Educational Attainment?”, American Journal of Sociology 107(1): 1–32. doi.org/10.1086/323149
Michaillat, P., and E. Saez 2021 “Resolving New Keynesian anomalies with wealth in the utility function”, The Review of Economics and Statistics 103(2): 197–215. doi.org/10.1162/rest_a_00893
Neumark, D., and A. Postlewaite 1998 “Relative income concerns and the rise in married women’s employment”, Journal of public Economics 70(1): 157–183 doi.org/10.1016/S0047-2727(98)00065-6
Ng, Y.K. 1987 “Relative-Income Effects and the Appropriate Level of Public Expenditure”, Oxford Economic Papers 39(2): 293–300. doi.org/10.1093/oxfordjournals.oep.a041787
Onwuegbuzie, A.J., and K.M.T. Collins 2007 “A typology of mixed methods sampling designs in social science research”, Qualitative Report 12(2): 281–316. doi.org/10.46743/2160-3715/2007.1638
Paul, S. 1991 “An Index of Relative Deprivation”, Economics Letters 36(3): 337–341. doi.org/10.1016/0165-1765(91)90043-K
Persson, M. 1995 “Why are taxes so high in egalitarian societies?”, Scandinavian Journal of Economics 97(4): 569-580.
Pigou, A.C. 1932 The Economics of Welfare Fourth Edition. London: Macmillan.
Podder, N. 1996 “Relative Deprivation, Envy and Economic Inequality”, Kyklos 49(3): 353–376. doi.org/10.1111/j.1467-6435.1996.tb01401.x
Power, S.A., T. Madsen, T.A. Morton 2020 “Relative Deprivation and Revolt: Current and Future Directions”, Current Opinion in Psychology 35: 119–124. doi.org/10.1016/j.copsyc.2020.06.010
Régner, I., P. Huguet, J.M. Monteil 2002 “Effects of Socioeconomic Status (SES) Information on Cognitive Ability Inferences: When Low-SES Students Make Use of a Self-threatening Stereotype”, Social Psychology of Education 5(3): 253–269. doi.org/10.1023/A:1016313908667
Robson, A.J. 1992 “Status, the Distribution of Wealth, Private and Social Attitudes to Risk”, Econometrica 60(4): 837–857.
Runciman, Walter G. 1966 Relative Deprivation and Social Justice London: Routledge.
Schwartzman, S., and M. Knobel 2016 “High-stakes entrance examinations: a view from Brazil”, International Higher Education (85): 19–20. doi.org/10.6017/ihe.2016.85.9242
Smith, Adam 1776 An Inquiry into the Nature and Causes of the Wealth of Nations Vol. 1 Oxford: Clarendon Press.
Smith, H.J., T.F. Pettigrew, G.M. Pippin, S. Bialosiewicz 2012 “Relative deprivation: A theoretical and meta-analytic review”, Personality and Social Psychology Review 16(3): 203–232. doi.org/10.1177/1088868311430825
Stark, O., J. Bielawski, F. Falniowski 2017 “A class of proximity-sensitive measures of relative deprivation”, Economics Letters 160: 105–110. doi.org/10.1016/j.econlet.2017.08.002
van de Stadt, H., A. Kapteyn, S. van de Geer 1985 “The relativity of utility: evidence from panel data”, The Review of Economics and Statistics 67(2): 179–187.
Veblen, Thorstein 1899 The Theory of the Leisure Class: An Economic Study of Institutions New York: Macmillan.
Verme, P. 2018 “Relative Deprivation and Relative Satisfaction: Empirical Findings”, in Conchita D’Ambrosio (Ed.) The Handbook of Research on Economic and Social Well-Being Cheltenham: Edward Elgar Publishing. pp. 356–376.
Wilkinson, R.G. 1997 “Socioeconomic determinants of health: Health inequalities: relative or absolute material standards?”, BMJ 314(7080): 591. doi.org/10.1136/bmj.314.7080.591
Yitzhaki, S. 1979 “Relative Deprivation and the Gini Coefficient”, Quarterly Journal of Economics 93(2): 321–324. doi.org/10.2307/1883197
—– 1980 “Relative Deprivation and the Gini Coefficient: Reply”, Quarterly Journal of Economics 95(3): 575–576. doi.org/10.2307/1885095
—– 1982 “Relative Deprivation and EconomicWelfare”, European Economic Review 17(1): 99–113. doi.org/10.1016/0014-2921(82)90045-9
—– 2010 “Is there Room for Polarization?”, Review of Income and Wealth 56(1): 7–22. doi.org/10.1111/j.1475-4991.2009.00360.x