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The effect of mental poverty on labor performance

Author

Listed:
  • Habibi, Samira

    (Master student of Development Economics and Planning, Alzahra University)

  • Hajimoladarvish, Narges

    (Professor at Alzahra University)

  • Raghfar, Hossein

    (Professor at Alzahra University)

Abstract

This study uses an innovative questionnaire to investigate the effect of mental poverty on the performance of human resources in an Iranian sample. Evidence from behavioural economics shows that mental poverty defined as reduced cognitive capacity due to scarcity and financial worries affect individuals’ performance. The innovative questionnaire that has been distributed and completed among the same people at the beginning and end of a given month has made it possible to exogenously impose mental poverty through time. It is assumed that workers are more likely to suffer from mental poverty at the end of the month when most of their income is consumed. Therefore, they are expected to have lower cognitive performance at the end of a given month. Data on individuals' performance in IQ tests, Frederick cognitive test and simple math questions is collected through the questionnaire. The questionnaire is distributed among 161 selected government employees in two rounds; once at the beginning of a given month and once at the end of the same month. The findings indicate that there is a negative and significant relation between mental poverty and labour performance in IQ tests

Suggested Citation

  • Habibi, Samira & Hajimoladarvish, Narges & Raghfar, Hossein, 2021. "The effect of mental poverty on labor performance," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 8(1), pages 165-184, June.
    • Handle: RePEc:ris:qjatoe:0222
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Behavioural economic; Labour performance; Mental poverty;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other

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