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Exposure to poverty and productivity

Author

Listed:
  • Dalton, Patricio

    (Tilburg University, School of Economics and Management)

  • Gonzalez Jimenez, Victor

    (Tilburg University, School of Economics and Management)

  • Noussair, Charles

    (Tilburg University, School of Economics and Management)

Abstract

We study whether exposure to poverty can induce affective states that decrease productivity. In a controlled laboratory setting, we find that subjects randomly assigned to a treatment, in which they view a video featuring individuals that live in extreme poverty, exhibit lower subsequent productivity compared to subjects assigned to a control treatment. Questionnaire responses, as well as facial recognition software, provide quantitative measures of the affective state evoked by the two treatments. Subjects exposed to images of poverty experience a more negative affective state than those in the control treatment. Further analysis shows that individuals in a more positive emotional state exhibit less of a treatment effect. Also, those who exhibit greater attentiveness upon viewing the poverty video are less productive. The results are consistent with the notion that exposure to poverty can induce a psychological state in individuals that adversely affects productivity.
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Suggested Citation

  • Dalton, Patricio & Gonzalez Jimenez, Victor & Noussair, Charles, 2017. "Exposure to poverty and productivity," Other publications TiSEM f8000f4a-b5d5-4ca5-bf73-2, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:f8000f4a-b5d5-4ca5-bf73-2c1d90589f9b
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Poverty and Productivity
      by Nicholas Gruen in Club Troppo on 2017-03-05 16:14:56
    2. Exposure to Poverty and Productivity
      by maximorossi in NEP-LTV blog on 2016-08-10 19:43:53

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    Cited by:

    1. Colleta Gandidzanwa & Aart Jan Verschoor & Thabo Sacolo, 2021. "Evaluating Factors Affecting Performance of Land Reform Beneficiaries in South Africa," Sustainability, MDPI, vol. 13(16), pages 1-15, August.

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    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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