Relative Deprivation and Life Satisfaction among Europeans: Keeping up with Others

Relative deprivation (RD) defines the feeling of being deprived of something that others have. Most studies of RD rely on within-country reference groups. This study is one of the few studies examining the role of global reference groups in determining life satisfaction. Using the relevant data of the Eurobarometer surveys, which covers the period from 1970–2003, we show that global RD is an important determinant of individual life satisfaction. Finally, for the 16 European Union member countries, the effect of global comparisons is significant but smaller than the effect of within-country comparisons. The result for candidate countries is the contrary.