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The preoccupied parent

Author

Listed:
  • Burlacu, Sergiu
  • Mani, Anandi
  • Ronzani, Piero
  • Savadori, Lucia

Abstract

We examine the hypothesis that low parental investments in children may be a consequence of the adverse cognitive effects of poverty: financial worries preoccupy low-income parents with immediate concerns, shifting their attention away from stimulating parenting tasks. We test this hypothesis in an online experiment studying the purchase decisions of UK parents, including their responsiveness to financial subsidies for child development products. Both low and higher-income parents respond to a subsidy on such products, increasing their demands. However, when primed with financial worries under the same budget, low-income parents respond less to the subsidy, prioritizing instead the purchase of products addressing immediate household needs. This lower responsiveness to subsidies appears to be driven by worried parents further away from their last payday. Stronger safety nets and better alignment of financial subsidies to payday cycles may help achieve more investment and better child outcomes in poorer families.

Suggested Citation

  • Burlacu, Sergiu & Mani, Anandi & Ronzani, Piero & Savadori, Lucia, 2023. "The preoccupied parent," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 105(C).
    • Handle: RePEc:eee:soceco:v:105:y:2023:i:c:s2214804323000563
    DOI: 10.1016/j.socec.2023.102030
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    More about this item

    Keywords

    Scarcity; Psychology of poverty; Parenting; Early childhood; Household decisions; Subsidies;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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