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The Psychology of Poverty: A Replication Based on Zimbabwe's Harmonised Social Cash Transfer Programme

Author

Listed:
  • Marwa Ibrahim
  • Yunwei Chen
  • Audrey Pereira
  • Takondwa Musa
  • Dharini Bathia
  • Sudhanshu Handa

Abstract

We perform a scientific replication of a recent paper in this journal that reports evidence from Malawi that an unconditional cash transfer programme affects psychological states, such as life satisfaction and subjective well-being, as well as economic decisions involving intertemporal choice. Using data from Zimbabwe, we find similar results. Together, these two studies are the first from outside a laboratory setting that support the idea that poverty can have psychological effects that in turn influence intertemporal choice in a way that perpetuates poverty. These results, if found to hold in diverse settings, open up the policy space for a broader range of interventions that could reduce the number of people living in poverty. As this is a relatively new idea in economics with important policy implications, replicating these results in other settings is important before they can be widely generalised.

Suggested Citation

  • Marwa Ibrahim & Yunwei Chen & Audrey Pereira & Takondwa Musa & Dharini Bathia & Sudhanshu Handa, 2024. "The Psychology of Poverty: A Replication Based on Zimbabwe's Harmonised Social Cash Transfer Programme," Journal of African Economies, Centre for the Study of African Economies, vol. 33(3), pages 225-239.
    • Handle: RePEc:oup:jafrec:v:33:y:2024:i:3:p:225-239.
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    References listed on IDEAS

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    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    3. Sudhanshu Handa & Amber Peterman, 2016. "Is There Catch-Up Growth? Evidence from Three Continents," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(4), pages 470-500, August.
    4. Lisa A. Gennetian & Eldar Shafir, 2015. "The Persistence Of Poverty In The Context Of Financial Instability: A Behavioral Perspective," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 34(4), pages 904-936, September.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    6. Ramlatu Attah & Valentina Barca & Andrew Kardan & Ian MacAuslan & Fred Merttens & Luca Pellerano, 2016. "Can Social Protection Affect Psychosocial Wellbeing and Why Does This Matter? Lessons from Cash Transfers in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 52(8), pages 1115-1131, August.
    7. Sudhanshu Handa & Carolyn Huang & Nicola Hypher & Clarissa Teixeira & Fabio V. Soares & Benjamin Davis, 2012. "Targeting effectiveness of social cash transfer programmes in three African countries," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(1), pages 78-108, March.
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    More about this item

    Keywords

    cash transfers; psychology of poverty; subjective well-being; Zimbabwe; JEL classification: A10; A12; I39;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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