Author:

Keywords:

Money metric utility, well–being measurement, equivalent variation, labour supply

Abstract:

We show that using different reference prices for different individuals in money metrics of well–being leads to violations of several normative properties of interpersonal welfare comparisons that have become popular in the fairness literature. An empirical illustration for Belgian single adults available for the labour market in 2015 shows that the violation of these principles in the labour consumption context, is all but exceptional