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2008-11-11 | EfD Discussion Paper

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

Martinsson, Peter and Alpaslan Akay. 2008. “Does Relative Income Matter for the Very Poor? Evidence from Rural Ethiopia.” EfD Discussion Paper 08.
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Does relative income have 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, this study (based on different definitions of reference groups) suggests that relative income does not affect subjective well-being among the very poor people in northern Ethiopia.