Zero-Sum Environments, the Evolution of Effort-Suppressing Beliefs, and Economic Development

Augustin Bergeron, Jean-Paul Carvalho, Joseph Henrich, Nathan Nunn and Jonathan L. Weigel

No 31663, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the evolution of belief systems that suppress productive effort, including beliefs about envy, the importance of luck for success, witchcraft beliefs, and disdain for competitive effort. Demotivating beliefs evolve when interactions are zero-sum. They improve short-run material welfare by limiting excessive competition but reduce long-run growth. Demotivating beliefs also drive a wedge between how well people do and how well they think they do. Whereas material welfare is hump-shaped in demotivating beliefs, subjective well-being is decreasing. These predictions are supported by data from two samples in the Democratic Republic of Congo and the World Values Survey.

JEL-codes: N10 O10 Q55 (search for similar items in EconPapers)
Date: 2023-09
New Economics Papers: this item is included in nep-evo and nep-his
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