Keeping up with the e-Joneses: Do online social networks raise social comparisons?

TL;DR

This paper investigates whether online social networks like Facebook increase social comparisons and income dissatisfaction, finding that SNS use significantly amplifies social comparisons, especially among younger users, more than traditional TV watching.

Contribution

It provides empirical evidence that SNS usage heightens social comparisons and income dissatisfaction, addressing endogeneity and comparing effects with TV watching.

Findings

SNS users are more likely to compare achievements with others

The effect is stronger than TV watching

Younger users are most affected

Abstract

Online social networks such as Facebook disclose an unprecedented volume of personal information amplifying the occasions for social comparisons. We test the hypothesis that the use of social networking sites (SNS) increases people's dissatisfaction with their income. After addressing endogeneity issues, our results suggest that SNS users have a higher probability to compare their achievements with those of others. This effect seems stronger than the one exerted by TV watching, it is particularly strong for younger people, and it affects men and women in a similar way.