Research Article
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The Determinants of Relative Income Perceptions among Canadian Households

Year 2024, Volume: 9 Issue: 25, 711 - 726, 31.10.2024
https://doi.org/10.25204/iktisad.1477554

Abstract

This study investigates the determinants influencing perceived income levels within Canada. Utilizing data from the Canadian cohort of the World Values Survey (WVS-7), spanning from 2017 to 2021, the analysis encompasses responses from 4,018 participants. In the research, an ordinal logistic regression model was utilized to assess the impact of an extensive range of variables on perceived income levels. The results of the study demonstrate that immigration status exerts a deleterious effect on perceived income levels among men, while marital status correlates positively with income, with married individuals reporting higher income levels compared to their single counterparts. Furthermore, possessing high professional skills and advanced educational qualifications significantly bolsters income perceptions among women. The analysis also reveals that reduced participation in the workforce and residence in rural areas are associated with lower income levels across both genders, with environmental factors imposing a disproportionately negative impact on women. Additionally, financial adversities manifest more severe detrimental effects on men's income perceptions. These findings underscore the importance of incorporating these diverse factors into the formulation of comprehensive socioeconomic policies.

References

  • Akinwande, M. O., Dikko, H. G. ve Samson, A. (2015). Variance inflation factor: as a condition for the inclusion of suppressor variable (s) in regression analysis. Open journal of statistics, 5(07), 754. https://doi.org/10.4236/ojs.2015.57075
  • Alvarez-Cuadrado, F. ve Van Long, N. (2011). The relative income hypothesis. Journal of Economic Dynamics and Control, 35(9), 1489-1501. https://doi.org/10.1016/j.jedc.2011.03.012
  • Cui, X. ve Chang, C. T. (2021). How income influences health: decomposition based on absolute income and relative income effects. International Journal of Environmental Research and Public Health, 18(20), 10738. https://doi.org/10.3390/ijerph182010738
  • Dean, J. ve Geloso, V. (2023). Poverty spells and economic freedom: Canadian evidence. Available at SSRN 4688323.
  • Decerf, B. (2023). Absolute and relative income poverty measurement: a survey. Research Handbook on Poverty and Inequality, 36-51. https://doi.org/10.4337/9781800882300.00009
  • Dohmen, T., Falk, A., Fliessbach, K., Sunde, U. ve Weber, B. (2011). Relative versus absolute income, joy of winning, and gender: brain imaging evidence. Journal of Public Economics, 95(3-4), 279-285. https://doi.org/10.1016/j.jpubeco.2010.11.025
  • FitzRoy, F. R. ve Nolan, M. A. (2022). Income status and life satisfaction. Journal of Happiness Studies, 23(1), 233-256. https://doi.org/10.1007/s10902-021-00397-y
  • Gero, K., Yazawa, A., Kondo, N., Hanazato, M., Kondo, K. ve Kawachi, I. (2022). Comparison of three indices of relative income deprivation in predicting health status. Social Science ve Medicine, 294, 114722. https://doi.org/10.1016/j.socscimed.2022.114722
  • Hu, C., Wu, J. ve Wang, Y. (2015). Relative income, income satisfaction and subjective happiness. Soc. Sci, 3503, 85-94.
  • Kaiser, H. F. (1960). The application of electronic computers to factor analysis. Educational and psychological measurement, 20(1), 141-151. https://doi.org/10.1177/001316446002000116
  • Kollamparambil, U. (2020). Happiness, happiness inequality and income dynamics in South Africa. Journal of Happiness Studies, 21(1), 201-222. https://doi.org/10.1007/s10902-019-00075-0
  • Lim, H. E., Shaw, D., Liao, P. S. ve Duan, H. (2020). The effects of income on happiness in East and South Asia: societal values matter? Journal of Happiness Studies, 21, 391-415. https://doi.org/10.1007/s10902-019-00088-9
  • McCullagh, P. (1980). Regression models for ordinal data. Journal of the Royal Statistical Society: Series B (Methodological), 42(2), 109-127. https://doi.org/10.1111/j.2517-6161.1980.tb01109.x
  • Noy, S. ve Sin, I. (2021). The effects of neighbourhood and workplace income comparisons on subjective wellbeing. Journal of Economic Behavior ve Organization, 185, 918-945. https://doi.org/10.1016/j.jebo.2020.11.008
  • Osafo Hounkpatin, H., Wood, A. M., Brown, G. D., ve Dunn, G. (2015). Why does income relate to depressive symptoms? Testing the income rank hypothesis longitudinally. Social Indicators Research, 124, 637-655. https://doi.org/10.1007/s11205-014-0795-3
  • Qin, W., Xu, L., Wu, S. ve Shao, H. (2021). Income, relative deprivation and the self-rated health of older people in urban and rural China. Frontiers in public health, 9, 658649. https://doi.org/10.3389/fpubh.2021.658649
  • Stranges, M., Vignoli, D. ve Venturini, A. (2021). Migrants’ subjective well-being in Europe: does relative income matter? European Societies, 23(2), 255-284. https://doi.org/10.1080/14616696.2020.1832238
  • Svavarsdottir, G. ve Asgeirsdottir, T. L. (2023). The relationship between perceived economic standing and happiness. Applied Economics Letters, 30(17), 2413-2419. https://doi.org/10.1080/13504851.2022.2097626
  • Syrda, J. (2020). Spousal relative income and male psychological distress. Personality and Social Psychology Bulletin, 46(6), 976-992. https://doi.org/10.1177/0146167219883611
  • Szczepaniak, M. (2024). Examining the determinants of Poland’s middle class life satisfaction. Social Indicators Research, 172, 191-218. https://doi.org/10.1007/s11205-023-03291-7
  • Tauseef, S. (2022). Can money buy happiness? Subjective wellbeing and its relationship with income, relative income, monetary and non-monetary poverty in Bangladesh. Journal of Happiness Studies, 23(3), 1073-1098. https://doi.org/10.1007/s10902-021-00443-9
  • Teeselink, B. K. ve Zauberman, G. (2023). The Anna Karenina income effect: well-being inequality decreases with income. Journal of Economic Behavior ve Organization, 212, 501-513. https://doi.org/10.1016/j.jebo.2023.05.036
  • Vartanian, T. P., Byers, D. S., Shapiro, J. ve Solo, C. (2024). The effects of relative income deprivation and low income on adult mental health.
  • Verme, P. (2013). The relative income and relative deprivation hypotheses: a review of the empirical literature. World Bank Policy Research Working Paper, (6606).
  • Walker, S. H. ve Duncan, D. B. (1967). Estimation of the probability of an event as a function of several independent variables. Biometrika, 54(1-2), 167-179. https://doi.org/10.1093/biomet/54.1-2.167
  • Zubrickas, R. (2023). The relative income effect and labor supply. Journal of Economic Behavior ve Organization, 209, 176-184. https://doi.org/10.1016/j.jebo.2023.02.025

Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar

Year 2024, Volume: 9 Issue: 25, 711 - 726, 31.10.2024
https://doi.org/10.25204/iktisad.1477554

Abstract

Bu çalışma, Kanada'daki algılanan gelir düzeylerini etkileyen belirleyicileri araştırmaktadır. 2017 ile 2021 yılları arasında gerçekleştirilen Dünya Değerler Araştırması'nın (WVS-7) Kanada örnekleminden elde edilen veriler kullanılarak, 4,018 katılımcının yanıtları analiz edilmiştir. Araştırmada, algılanan gelir düzeyleri üzerinde geniş bir değişken yelpazesinin etkisini değerlendirmek için sıralı lojistik regresyon modeli kullanılmıştır. Çalışmanın sonuçları, göçmenlik durumunun erkekler arasında algılanan gelir düzeyleri üzerinde olumsuz bir etkiye sahip olduğunu, medeni durumun ise gelirle pozitif bir korelasyon gösterdiğini, evli bireylerin bekarlara kıyasla daha yüksek gelir düzeyleri bildirdiğini ortaya koymuştur. Ayrıca, yüksek profesyonel becerilere ve ileri düzey eğitim niteliklerine sahip olmanın kadınlar arasında gelir algılarını önemli ölçüde güçlendirdiği görülmüştür. Analiz, iş gücüne katılımın azalması ve kırsal bölgelerde ikametin her iki cinsiyet için de daha düşük gelir düzeyleri ile ilişkili olduğunu, çevresel faktörlerin ise kadınlar üzerinde orantısız bir şekilde olumsuz bir etki yarattığını da göstermiştir. Ek olarak, finansal zorluklar, erkeklerin gelir algıları üzerinde daha şiddetli olumsuz etkiler yaratmaktadır. Bu bulgular, bu çeşitli faktörlerin kapsamlı sosyoekonomik politikaların oluşturulmasına dâhil edilmesinin önemini vurgulamaktadır.

References

  • Akinwande, M. O., Dikko, H. G. ve Samson, A. (2015). Variance inflation factor: as a condition for the inclusion of suppressor variable (s) in regression analysis. Open journal of statistics, 5(07), 754. https://doi.org/10.4236/ojs.2015.57075
  • Alvarez-Cuadrado, F. ve Van Long, N. (2011). The relative income hypothesis. Journal of Economic Dynamics and Control, 35(9), 1489-1501. https://doi.org/10.1016/j.jedc.2011.03.012
  • Cui, X. ve Chang, C. T. (2021). How income influences health: decomposition based on absolute income and relative income effects. International Journal of Environmental Research and Public Health, 18(20), 10738. https://doi.org/10.3390/ijerph182010738
  • Dean, J. ve Geloso, V. (2023). Poverty spells and economic freedom: Canadian evidence. Available at SSRN 4688323.
  • Decerf, B. (2023). Absolute and relative income poverty measurement: a survey. Research Handbook on Poverty and Inequality, 36-51. https://doi.org/10.4337/9781800882300.00009
  • Dohmen, T., Falk, A., Fliessbach, K., Sunde, U. ve Weber, B. (2011). Relative versus absolute income, joy of winning, and gender: brain imaging evidence. Journal of Public Economics, 95(3-4), 279-285. https://doi.org/10.1016/j.jpubeco.2010.11.025
  • FitzRoy, F. R. ve Nolan, M. A. (2022). Income status and life satisfaction. Journal of Happiness Studies, 23(1), 233-256. https://doi.org/10.1007/s10902-021-00397-y
  • Gero, K., Yazawa, A., Kondo, N., Hanazato, M., Kondo, K. ve Kawachi, I. (2022). Comparison of three indices of relative income deprivation in predicting health status. Social Science ve Medicine, 294, 114722. https://doi.org/10.1016/j.socscimed.2022.114722
  • Hu, C., Wu, J. ve Wang, Y. (2015). Relative income, income satisfaction and subjective happiness. Soc. Sci, 3503, 85-94.
  • Kaiser, H. F. (1960). The application of electronic computers to factor analysis. Educational and psychological measurement, 20(1), 141-151. https://doi.org/10.1177/001316446002000116
  • Kollamparambil, U. (2020). Happiness, happiness inequality and income dynamics in South Africa. Journal of Happiness Studies, 21(1), 201-222. https://doi.org/10.1007/s10902-019-00075-0
  • Lim, H. E., Shaw, D., Liao, P. S. ve Duan, H. (2020). The effects of income on happiness in East and South Asia: societal values matter? Journal of Happiness Studies, 21, 391-415. https://doi.org/10.1007/s10902-019-00088-9
  • McCullagh, P. (1980). Regression models for ordinal data. Journal of the Royal Statistical Society: Series B (Methodological), 42(2), 109-127. https://doi.org/10.1111/j.2517-6161.1980.tb01109.x
  • Noy, S. ve Sin, I. (2021). The effects of neighbourhood and workplace income comparisons on subjective wellbeing. Journal of Economic Behavior ve Organization, 185, 918-945. https://doi.org/10.1016/j.jebo.2020.11.008
  • Osafo Hounkpatin, H., Wood, A. M., Brown, G. D., ve Dunn, G. (2015). Why does income relate to depressive symptoms? Testing the income rank hypothesis longitudinally. Social Indicators Research, 124, 637-655. https://doi.org/10.1007/s11205-014-0795-3
  • Qin, W., Xu, L., Wu, S. ve Shao, H. (2021). Income, relative deprivation and the self-rated health of older people in urban and rural China. Frontiers in public health, 9, 658649. https://doi.org/10.3389/fpubh.2021.658649
  • Stranges, M., Vignoli, D. ve Venturini, A. (2021). Migrants’ subjective well-being in Europe: does relative income matter? European Societies, 23(2), 255-284. https://doi.org/10.1080/14616696.2020.1832238
  • Svavarsdottir, G. ve Asgeirsdottir, T. L. (2023). The relationship between perceived economic standing and happiness. Applied Economics Letters, 30(17), 2413-2419. https://doi.org/10.1080/13504851.2022.2097626
  • Syrda, J. (2020). Spousal relative income and male psychological distress. Personality and Social Psychology Bulletin, 46(6), 976-992. https://doi.org/10.1177/0146167219883611
  • Szczepaniak, M. (2024). Examining the determinants of Poland’s middle class life satisfaction. Social Indicators Research, 172, 191-218. https://doi.org/10.1007/s11205-023-03291-7
  • Tauseef, S. (2022). Can money buy happiness? Subjective wellbeing and its relationship with income, relative income, monetary and non-monetary poverty in Bangladesh. Journal of Happiness Studies, 23(3), 1073-1098. https://doi.org/10.1007/s10902-021-00443-9
  • Teeselink, B. K. ve Zauberman, G. (2023). The Anna Karenina income effect: well-being inequality decreases with income. Journal of Economic Behavior ve Organization, 212, 501-513. https://doi.org/10.1016/j.jebo.2023.05.036
  • Vartanian, T. P., Byers, D. S., Shapiro, J. ve Solo, C. (2024). The effects of relative income deprivation and low income on adult mental health.
  • Verme, P. (2013). The relative income and relative deprivation hypotheses: a review of the empirical literature. World Bank Policy Research Working Paper, (6606).
  • Walker, S. H. ve Duncan, D. B. (1967). Estimation of the probability of an event as a function of several independent variables. Biometrika, 54(1-2), 167-179. https://doi.org/10.1093/biomet/54.1-2.167
  • Zubrickas, R. (2023). The relative income effect and labor supply. Journal of Economic Behavior ve Organization, 209, 176-184. https://doi.org/10.1016/j.jebo.2023.02.025
There are 26 citations in total.

Details

Primary Language Turkish
Subjects Applied Microeconometrics
Journal Section Research Papers
Authors

Özcan Özkan 0000-0002-8170-0556

Early Pub Date October 26, 2024
Publication Date October 31, 2024
Submission Date May 2, 2024
Acceptance Date May 29, 2024
Published in Issue Year 2024 Volume: 9 Issue: 25

Cite

APA Özkan, Ö. (2024). Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar. İktisadi İdari Ve Siyasal Araştırmalar Dergisi, 9(25), 711-726. https://doi.org/10.25204/iktisad.1477554
AMA Özkan Ö. Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar. JEBUPOR. October 2024;9(25):711-726. doi:10.25204/iktisad.1477554
Chicago Özkan, Özcan. “Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar”. İktisadi İdari Ve Siyasal Araştırmalar Dergisi 9, no. 25 (October 2024): 711-26. https://doi.org/10.25204/iktisad.1477554.
EndNote Özkan Ö (October 1, 2024) Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar. İktisadi İdari ve Siyasal Araştırmalar Dergisi 9 25 711–726.
IEEE Ö. Özkan, “Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar”, JEBUPOR, vol. 9, no. 25, pp. 711–726, 2024, doi: 10.25204/iktisad.1477554.
ISNAD Özkan, Özcan. “Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar”. İktisadi İdari ve Siyasal Araştırmalar Dergisi 9/25 (October 2024), 711-726. https://doi.org/10.25204/iktisad.1477554.
JAMA Özkan Ö. Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar. JEBUPOR. 2024;9:711–726.
MLA Özkan, Özcan. “Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar”. İktisadi İdari Ve Siyasal Araştırmalar Dergisi, vol. 9, no. 25, 2024, pp. 711-26, doi:10.25204/iktisad.1477554.
Vancouver Özkan Ö. Kanada Hane Halklarının Göreceli Gelir Algılarını Şekillendiren Unsurlar. JEBUPOR. 2024;9(25):711-26.