Interindividual deprivation, close and remote individuals
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Universidad de Granada. Departamento de Teoría e Historia Económica
InequalityInter-individual comparisonsReference groupsWeighting functions
Imedio Olmedo, L.J.; Bárcena-Martín, E.; Parrado Gallardo, E. Interindividual deprivation, close and remote individuals. Universidad de Granada. Departamento de Teoría e Historia Económica (2013). (The Papers; 13/08). [http://hdl.handle.net/10481/31589]
SponsorshipFinancial support from the Spanish Institute for Fiscal Studies.
In assessing relative deprivation, the classical approach considers that individuals compare their income with each and every income of the distribution, and assign equal weight to these comparisons. In this paper we propose a more realistic alternative approach to obtain individual deprivation. We assume that the deprivation of the individual depends, to a greater extent, on the situation of those who are part of their social environment (neighbors, colleagues, family, or, in general, the individual’s reference group) rather than on the situation of those in an unattainable situation from the individual’s point of view. In developing their aspirations, individuals focus on the group to which they belong or at least, they feel they are likely to belong to. As a particular case, our proposal includes the classical approach, allowing us to explain some situations that do not fall under the assumptions of that approach.