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Poverty and perseverance: The detrimental effect of poverty on effort provision

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  • Sharafi, Zahra

Abstract

Perseverance, known as provision and continuation of effort, is a decisive factor in the accomplishment of all goals. Poverty, however, can impair this crucial skill. In this paper, I analyze the causal effect of poverty on perseverance in an education context with adolescents in Iran. Using a difference-in-differences design to manipulate perceptions of own scarcities and deprivations, I measure adolescents’ perseverance while they complete a real-effort task. Results reveal a large and significant negative effect of poverty on perseverance, and consequently, performance. Participants from economically disadvantaged backgrounds exert 25% less effort than those from affluent backgrounds. This study suggests that poverty is one of the possible underlying causes to impair perseverance demonstration in effort-demanding situations.

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  • Sharafi, Zahra, 2023. "Poverty and perseverance: The detrimental effect of poverty on effort provision," Journal of Development Economics, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:deveco:v:162:y:2023:i:c:s0304387822001821
    DOI: 10.1016/j.jdeveco.2022.103040
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    More about this item

    Keywords

    Poverty; Effort provision; Non-cognitive skills; Psychology of poverty; Adolescents;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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