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Individual Poverty Paths and the Stability of Control-Perception

Hendrik Thiel () and Stephan Thomsen
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Hendrik Thiel: NIW Hannover, Leibniz Universität Hannover

No 9334, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates whether individual control-perception affects the probability of becoming poor, and vice versa, whether poverty experiences can be detrimental to these traits later on. The former relation is intuitive as control related traits underlay many idiosyncratic determinants of poverty. Though traits like control-perception are known to stabilize towards adulthood, the latter association may be plausible when some plasticity is maintained in case of more vigorous environmental influences like poverty. Such deterioration of control-perception would lead to poor people being literally "trapped". Yet, it is unclear what the underlying mediation paths are and whether control-perception or other potential factors are involved. Our empirical results suggest that poverty experiences affect individual control-perception to some extent. Despite rather modest magnitudes, the findings indicate that no invariance of control-perception is given in adulthood.

Keywords: personality traits; control-perception; poverty constitution; poverty experience (search for similar items in EconPapers)
JEL-codes: C33 C35 J21 J24 J30 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2015-09
New Economics Papers: this item is included in nep-lma
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