Relative Deprivation, Envy and Economic Inequality

This paper develops an economic measure of relative deprivation and explores its relationship to envy and economic inequality. It is demonstrated that, while the concept of envy is virtually identical with that of relative deprivation, economic inequality, although a related concept, and a determinant of relative deprivation, is fundamentally different in its intent and purpose. It is also demonstrated that an essential feature of relative deprivation is that it is a nonlinear and nonmonotonic function of economic inequality. As a result, a high degree of economic inequality means only a low degree of relative deprivation.