Dartmouth College (formerly Harvard Kennedy School)
Erzo F.P. Luttmer
Known for:Empirically establishing that neighbors' relative earnings predict individual wellbeing as strongly as own income, coining the 'Neighbors as Negatives' framework
Key findings
- 2005
Using US General Social Survey data, Luttmer found that higher neighborhood income — controlling for own income — significantly reduced individual happiness, with an effect size roughly equal to an equivalent drop in one's own earnings. The study placed relative income on the same causal scale as absolute income for predicting subjective wellbeing. ↗