Poverty and perseverance: The detrimental effect of poverty on effort provision

Zahra Sharafi

Journal of Development Economics, 2023, vol. 162, issue C

Abstract: Perseverance, known as provision and continuation of effort, is a decisive factor in the accomplishment of all goals. Poverty, however, can impair this crucial skill. In this paper, I analyze the causal effect of poverty on perseverance in an education context with adolescents in Iran. Using a difference-in-differences design to manipulate perceptions of own scarcities and deprivations, I measure adolescents’ perseverance while they complete a real-effort task. Results reveal a large and significant negative effect of poverty on perseverance, and consequently, performance. Participants from economically disadvantaged backgrounds exert 25% less effort than those from affluent backgrounds. This study suggests that poverty is one of the possible underlying causes to impair perseverance demonstration in effort-demanding situations.

Keywords: Poverty; Effort provision; Non-cognitive skills; Psychology of poverty; Adolescents (search for similar items in EconPapers)
JEL-codes: D91 I32 O12 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:162:y:2023:i:c:s0304387822001821

DOI: 10.1016/j.jdeveco.2022.103040

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