Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245658 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14607
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We test whether an environment of poverty affects time preferences through purely psychological channels. We measured discount rates among farmers in Uganda who made decisions about when to enjoy entertainment instead of working. To circumvent the role of economic constraints, we experimentally induced thoughts about poverty-related problems, using priming techniques. We find that thinking about poverty increases the preference to consume entertainment early and to delay work. Using monitoring tools similar to eye tracking, a novel feature for this subject pool, we show that this effect is unlikely to be driven by less careful decision-making processes.
Subjects: 
poverty
scarcity
time preferences
self-control
inattention
JEL: 
C93
D91
O12
Document Type: 
Working Paper

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