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Individual Poverty Paths and the Stability of Control-Perception

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  • Thiel, Hendrik

    () (NIW Hannover, Leibniz Universit├Ąt Hannover)

  • Thomsen, Stephan L.

    () (Leibniz University of Hannover)

Abstract

This paper investigates whether individual control-perception affects the probability of becoming poor, and vice versa, whether poverty experiences can be detrimental to these traits later on. The former relation is intuitive as control related traits underlay many idiosyncratic determinants of poverty. Though traits like control-perception are known to stabilize towards adulthood, the latter association may be plausible when some plasticity is maintained in case of more vigorous environmental influences like poverty. Such deterioration of control-perception would lead to poor people being literally "trapped". Yet, it is unclear what the underlying mediation paths are and whether control-perception or other potential factors are involved. Our empirical results suggest that poverty experiences affect individual control-perception to some extent. Despite rather modest magnitudes, the findings indicate that no invariance of control-perception is given in adulthood.

Suggested Citation

  • Thiel, Hendrik & Thomsen, Stephan L., 2015. "Individual Poverty Paths and the Stability of Control-Perception," IZA Discussion Papers 9334, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9334
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    More about this item

    Keywords

    personality traits; control-perception; poverty constitution; poverty experience;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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