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A Multidimensional Analysis of Adaptation in a Developing Country Context

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  • Abigail Barr
  • David Clark

Abstract

Econometric analyses of European datasets suggest that income aspirations increase with current income. This finding is consistent with the adaptation hypothesis - the notion that individual aspirations adjust to reflect personal circumstances and living conditions. We add to these existing studies in two ways: we investigate the relationship between aspirations and living conditions within a developing country rather than a developed country context, thereby extending the analysis to individuals with considerably poorer living conditions; and we expand the analysis to look not only at income but also at educational and health aspirations. Like earlier studies we find that income aspirations increase with both the individual’s own actual income and the incomes of those around them. We also find a positive relationship between actual and aspired to education. However, with respect to health, we find that people aspire to more rather than less health when surrounded by others who are ill.

Suggested Citation

  • Abigail Barr & David Clark, 2007. "A Multidimensional Analysis of Adaptation in a Developing Country Context," CSAE Working Paper Series 2007-19, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2007-19
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    File URL: https://ora.ox.ac.uk/objects/uuid:0a4e497c-4c6d-41e1-bd78-465d4c89514f
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    References listed on IDEAS

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    1. Robert Biswas-Diener & Ed Diener, 2006. "The Subjective Well-Being of the Homeless, and Lessons for Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(2), pages 185-205, April.
    2. Van Praag, Bernard, 1971. "The welfare function of income in Belgium: An empirical investigation," European Economic Review, Elsevier, vol. 11(3), pages 337-369.
    3. Van Praag, Bernard M. S. & Kapteyn, Arie, 1973. "Further evidence on the individual welfare function of income: An empirical investigatiion in The Netherlands," European Economic Review, Elsevier, vol. 4(1), pages 33-62, April.
    4. Robert Biswas-Diener & Ed Diener, 2001. "Making the Best of a Bad Situation: Satisfaction in the Slums of Calcutta," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 55(3), pages 329-352, September.
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    Cited by:

    1. Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality.
    2. Laura Camfield & Awae Masae & J. McGregor & Buapun Promphaking, 2013. "Cultures of Aspiration and Poverty? Aspirational Inequalities in Northeast and Southern Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1049-1072, December.
    3. Luuk Kempen, 2009. "The ‘Downside’ of Women Empowerment in India: An Experimental Inquiry into the Role of Expectations," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 94(3), pages 465-482, December.

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    More about this item

    Keywords

    adaptation; aspirations; poverty; well-being; education; health;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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