Exposure to Poverty and Productivity

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 productivit...

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Bibliographic Details
Main Authors: Dalton, Patricio S., Gonzalez Jimenez, Victor H., Noussair, Charles N.
Other Authors: Univ Arizona, Dept Econ, Eller Coll Management
Language:en
Published: PUBLIC LIBRARY SCIENCE 2017
Online Access:http://hdl.handle.net/10150/623093
http://arizona.openrepository.com/arizona/handle/10150/623093
Description
Summary: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.