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Can Positive Psychology Improve Psychological Well-Being and Economic Decision-Making? Experimental Evidence from Kenya

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  • Victoria Baranov
  • Johannes Haushofer
  • Chaning Jang

Abstract

We conduct a randomized experiment to evaluate the effect of a light-touch, low-cost psychological intervention on psychological well-being and economic decision-making in a developing country setting. Residents of an informal settlement in Kenya were randomly assigned to participate in best-practice exercises designed to promote gratitude, self-affirmation, and aspirations. We show that although we were successful in manipulating the psychological construct (reported gratitude increased by 0.3 standard deviation), there is no evidence that the intervention affected overall psychological well-being, beliefs, or aspirations. We also see no effects on real-incentive tasks measuring cognitive control or temporal discounting. Our results are important because light-touch positive psychology interventions are being widely promoted in workplaces and schools worldwide as a low-cost way to dramatically improve psychological well-being.

Suggested Citation

  • Victoria Baranov & Johannes Haushofer & Chaning Jang, 2020. "Can Positive Psychology Improve Psychological Well-Being and Economic Decision-Making? Experimental Evidence from Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1345-1376.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/702860
    DOI: 10.1086/702860
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    Cited by:

    1. Shane Enete & Martin Seay & Sarah Asebedo & David Wang & Megan McCoy, 2022. "Understanding the influence of emotion on both time and money: applying the broaden and build theory," SN Business & Economics, Springer, vol. 2(5), pages 1-24, May.
    2. Mateus Dias & Luiz Felipe Fontes, 2024. "The Effects of a Large-Scale Mental Health Reform: Evidence from Brazil," American Economic Journal: Economic Policy, American Economic Association, vol. 16(3), pages 257-289, August.
    3. Michael Vlassopoulos & Abu Siddique & Tabassum Rahman & Debayan Pakrashi & Asad Islam & Firoz Ahmed, 2024. "Improving Women's Mental Health during a Pandemic," American Economic Journal: Applied Economics, American Economic Association, vol. 16(2), pages 422-455, April.
    4. Ross, Phillip H. & Glewwe, Paul & Prudencio, Daniel & Wydick, Bruce, 2021. "Developing educational and vocational aspirations through international child sponsorship: Evidence from Kenya, Indonesia, and Mexico," World Development, Elsevier, vol. 140(C).

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