|
If you are seeing this message, you may be experiencing temporary network problems. Please wait a few minutes and refresh the page. If the problem persists, you may wish to report it to your local Network Manager.
It is also possible that your web browser is not configured or not able to display style sheets. In this case, although the visual presentation will be degraded, the site should continue to be functional. We recommend using the latest version of Microsoft or Mozilla web browser to help minimise these problems.
Wiley InterScience | |||
  The Economic JournalVolume 114 Issue 498, Pages 727 - 749 Published Online: 28 Sep 2004 Journal compilation © 2010 by the Royal Economic Society (Registered Charity No. 231508) Published on behalf of the Royal Economic Society
Abstract | References | Full Text: HTML, PDF (Size: 166K) | Related Articles | Citation Tracking  Cognitive dissonance, status and growth of the underclass* * I am indebted to Louis Makowski for his invaluable advice. Comments by John Boyce, Humberto Llavador, three anonymous referees and a very patient editor significantly improved the paper. I would also like to thank Giacomo Bonanno, B. Curtis Eaton, Sami Kitmitto, and Allison Oxoby for helpful comments. Financial support from the Russell Sage Foundation is gratefully acknowledged. Copyright 2004 Royal Economic Society ABSTRACTWe present a model of cognitive adaptation to examine the growth and behaviours of the underclass. In the model, individuals experiencing cognitive dissonance between status seeking and social recognition adapt their attitudes regarding what is deemed status worthy. This yields the endogenous formation of an underclass in which non-pecuniary social returns counteract the effect of traditional incentives (i.e. wages) in motivating behaviour. By gaining insight into the process of psychological adaptation of those living in poverty, the paper sheds light on economic policies that mitigate the disenfranchisement and hence the growth of the underclass. Date of receipt of first submission: March 2001 Date of receipt of final typescript: November 2003 | 
|
