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Poverty and aspirations failure

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Dalton, Patricio S. (Patricio Santiago), Ghosal, Sayantan and Mani, Anandi (2010) Poverty and aspirations failure. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2010 (Number 22).

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Abstract

We develop a model of internal constraints to show that a greater degree of initial disadvantage
results in a higher likelihood of low aspirations and low achievement. Our model and
results are supported by evidence from anthropology, sociology and social psychology. Our
analysis suggests that internal constraints are a key ingredient in perpetuating poverty traps.
We show that a poor person will choose to restrict her cognitive window (the set of other individuals
who are her role models) and study the conditions under which a role model could
alter her aspirations and achievement. We show how enodgenously chosen cognitive windows
interact with the inital distribution of status to determine whether or not a society is connected,
and hence the transmission of aspirations across individuals in that society. Our work provides
a normative justification for programs that aim at empowering disadvantaged individuals by
directly shocking their aspirations.

Item Type: Working or Discussion Paper (Working Paper)
Alternative Title:
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Vocational interests , Poverty, Role models
Series Name: CAGE Online Working Paper Series
Publisher: Department of Economics, University of Warwick
Place of Publication: Coventry, UK
Official Date: September 2010
Dates:
DateEvent
September 2010Published
Volume: Volume 2010
Number: Number 22
Number of Pages: 46
Institution: University of Warwick
Status: Not Peer Reviewed
Publication Status: Published
Funder: Economic and Social Research Council (Great Britain) (ESRC)
Grant number: RES-167-25-0364 (ESRC)

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