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The Psychology of Poverty: A Replication Based on Zimbabwe's Harmonised Social Cash Transfer Programme

Marwa Ibrahim, Yunwei Chen, Audrey Pereira, Takondwa Musa, Dharini Bathia and Sudhanshu Handa

Journal of African Economies, 2024, vol. 33, issue 3, 225-239

Abstract: We perform a scientific replication of a recent paper in this journal that reports evidence from Malawi that an unconditional cash transfer programme affects psychological states, such as life satisfaction and subjective well-being, as well as economic decisions involving intertemporal choice. Using data from Zimbabwe, we find similar results. Together, these two studies are the first from outside a laboratory setting that support the idea that poverty can have psychological effects that in turn influence intertemporal choice in a way that perpetuates poverty. These results, if found to hold in diverse settings, open up the policy space for a broader range of interventions that could reduce the number of people living in poverty. As this is a relatively new idea in economics with important policy implications, replicating these results in other settings is important before they can be widely generalised.

Keywords: cash transfers; psychology of poverty; subjective well-being; Zimbabwe; JEL classification: A10; A12; I39 (search for similar items in EconPapers)
Date: 2024
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