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Exposure to Poverty and Productivity

Author

Listed:
  • Dalton, Patricio

    (Tilburg University, Center For Economic Research)

  • Gonzalez Jimenez, Victor

    (Tilburg University, Center For Economic Research)

  • Noussair, Charles

    (Tilburg University, Center For Economic Research)

Abstract

We study whether exposure to poverty can induce affective states that decrease productivity. In a controlled laboratory setting, we find that subjects randomly assigned to a treatment, in which they view a video featuring individuals that live in extreme poverty, exhibit lower subsequent productivity compared to subjects assigned to a control treatment. Questionnaire responses, as well as facial recognition software, provide quantitative measures of the affective state evoked by the two treatments. Subjects exposed to images of poverty experience a more negative affective state than those in the control treatment. Further analysis shows that individuals in a more positive emotional state exhibit less of a treatment effect. Also, those who exhibit greater attentiveness upon viewing the poverty video are less productive. The results are consistent with the notion that exposure to poverty can induce a psychological state in individuals that adversely affects productivity.
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(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dalton, Patricio & Gonzalez Jimenez, Victor & Noussair, Charles, 2016. "Exposure to Poverty and Productivity," Discussion Paper 2016-027, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:fcd7ed5d-22ed-4142-8143-b7533b40044e
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Poverty and Productivity
      by Nicholas Gruen in Club Troppo on 2017-03-05 16:14:56
    2. Exposure to Poverty and Productivity
      by maximorossi in NEP-LTV blog on 2016-08-10 19:43:53

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    Cited by:

    1. Colleta Gandidzanwa & Aart Jan Verschoor & Thabo Sacolo, 2021. "Evaluating Factors Affecting Performance of Land Reform Beneficiaries in South Africa," Sustainability, MDPI, vol. 13(16), pages 1-15, August.

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    More about this item

    Keywords

    poverty; productivity; mood; emotions; limited attention; experiments;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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