This paper proposes that individuals care about the relative income of proximate reference groups. Making use of self … positively linked to individual life satisfaction. This evidence supplements the scarce economic research on reference groups …Po l i c y Re s e a R c h Wo R k i n g Pa P e R 4820 A Curse of Comparison? Evidence on Reference Groups for …

arguably contains more information about the individual’s own future prospects than do the incomes of other reference groups …. Last, there is some evidence that reference groups are endogenous, with individuals tending to compare to those with whom …

consumption. Using life satisfaction panel data from Australia, along with an improved measure of exogenous reference groups (that …

theory. Prior research has shown the influential nature of reference groups on an individuals’ behaviour. The studied … highlighted. The imagined audience of various reference groups do impact the individual’s future behaviours. Research limitations …/implications – Future researchers could apply additional role theory constructs not only to reference groups but also to other aspects of …