Justine Burns

Prosocial Spending and Well-Being : Cross-Cultural Evidence for a Psychological Universal

This research provides the first support for a possible psychological universal: Human beings around the world derive emotional benefits from using their financial resources to help others (prosocial spending). In Study 1, survey data from 136 countries were examined and showed that prosocial spending is associated with greater happiness around the world, in poor and rich countries alike. To test for causality, in Studies 2a and 2b, we used experimental methodology, demonstrating that recalling a past instance of prosocial spending has a causal impact on happiness across countries that differ greatly in terms of wealth (Canada, Uganda, and India). Finally, in Study 3, participants in Canada and South Africa randomly assigned to buy items for charity reported higher levels of positive affect than participants assigned to buy the same items for themselves, even when this prosocial spending did not provide an opportunity to build or strengthen social ties. Our findings suggest that the reward experienced from helping others may be deeply ingrained in human nature, emerging in diverse cultural and economic contexts.

Global Apparel Production and Sweatshop Labor: Can Raising Retail Prices Finance Living Wages?

This paper provides some empirical evidence on issues raised by the global antisweatshop movement. We first consider the relationship between wage and employment growth, finding no consistent trade-off between them. We then measure the share of labour costs in the production of garments in the US and Mexico. We find that the retail price increases necessary to absorb the costs of raising wages substantially are small, well within the range of price increases that polls suggest US consumers are willing to pay. We close by considering some implications of these results. Copyright 2004, Oxford University Press.

Risk Aversion: Experimental Evidence from South African Fishing Communities

We estimate the risk attitudes of a large sample of small-scale fishers from various fishing communities along the west coast of South Africa, using subjects’ choices over lotteries with real monetary prizes. We find that participants are moderately risk averse and that risk attitudes vary with certain socio-demographic variables. In particular, females are found to be more risk averse than their male counterparts, while quota holders are more risk loving. Logistic regression analysis indicates that risk attitudes have implications for non-compliance with fisheries regulation. Specifically, greater risk aversion translates into a reduction in the odds of catching illegally. Furthermore, in the case of gender, female fishers and female fishers with fishing rights are more likely to comply with fisheries regulation. These findings have important implications for the characterisation of risk attitudes in fisheries policy applications and for the management of marine resources.

Social assistance, gender, and the aged in South Africa

This paper reviews the history of the noncontributory social pension in South Africa, as well as recent work on the distributional and poverty-alleviating effects of this program. The pension has a strong gender dimension, reaching three times as many women as men, and has an unambiguous impact on reducing household poverty, particularly among Black South African households. The existing literature also suggests that the pension reaches unintended beneficiaries within households and that strongly gender-differentiated patterns emerge both in the sharing of pension incomes by pensioners and in the behavioral responses of other household members to pension receipt.

Inheriting the Future: Intergenerational Persistence of Educational status in KwaZulu-Natal, South Africa

ABSTRACT This paper examines the changes in the educational attainment of three successive generations in South Africa: grandparents, parents and children. Many of the results accord with widely known facts, such as the educational penalty faced by individuals who are African or who live in rural areas or in female-headed households. Similarly, the larger impact of mothers education on child outcomes relative to fathers education accords with previous work, although it is interesting that this gender difference is only sizeable and significant for relationships between the second and third generation. Key findings in this paper include the fact that persistence has increased with subsequent generations.

Two Sides of the Same Coin: Re-examining Nepotism and Discrimination in a Segmented Society

Abstract We report the results from a series of trust games designed to distinguish racial discrimination from racial nepotism, played with a sample of high school students in Cape Town, South Africa. In contrast to the original work in this regard by Fershtman et al. (2005), we find considerably greater heterogeneity in the way that proposers respond to the revealed racial identity of their partner, with nepotism being a dominant behavior. However, while some proposers exhibit a nepotistic bias in their offers that favors in-group members on average, others exhibit a nepotistic strategy that favors out-group members. A consequence of this nepotism is that both efficiency and equity are reduced on average.

Evaluating the Impact of Health Programmes on Productivity

This article reviews some of the key methodological approaches available to researchers interested in identifying a causal relationship between health interventions and economic indicators of productivity. We then discuss some of the empirical work that has utilized these techniques in making the case for a causal relationship from health interventions to productivity. We conclude that while considerable progress has been made in addressing concerns over attribution, much work remains to be done in expanding our knowledge of why certain interventions work whilst others do not. relationship between income and health is harder to establish. Plausibly, many economic outcomes of interest (productivity for instance) and an individuals health status are simultaneously determined, requiring that special attention be paid to identification strategies when trying to establish causal effects of health interventions on economic outcomes. Even when credible identification strategies are available, the evidence on this link tends to be limited in scope and generalizability; this is partly due to the fact that evaluating the impact of health interventions on individual welfare and productivity involves time lags between the intervention, often made during infancy or childhood, and welfare outcomes of interest, such as employment status, usually observed in adulthood. In this paper, we review some of the key methodological approaches available to researchers interested in identifying a causal relationship between health interventions and economic indicators of productivity or success, and then discuss some of the empirical work that has utilized these techniques in making the case for a causal relationship from health interventions to productivity. We conclude by reflecting on those areas where the evidence is still limited in scope, thus providing opportunities for future research.

Revisiting wage subsidies: How pro-poor is a South African wage subsidy likely to be?

Wage subsidies have been used in both developed and developing countries to raise employment. After a decade of deliberation, the South African Government recently announced the introduction of a wage subsidy scheme. Given the intrinsic link between unemployment and poverty in South Africa, the belief is that a wage subsidy programme sufficient in scope will also make inroads into poverty. However, the way in which jobs are distributed among poor and non-poor jobseekers is crucial. Our general equilibrium microsimulation model confirms the expectation that a higher wage elasticity of labour demand is associated with larger reductions in poverty. We also find that a greater proportion of new jobs accrue to poor jobseekers when the elasticity is high. While youth-targeting does not improve the poverty-reducing effect of the policy, sectors such as textiles, accommodation, and construction services with their pro-poor employment profiles are good candidates for targeting.

The Effects of Social Exclusion and Group Heterogeneity on the Provision of Public Goods

The multi-dimensional nature of social exclusion requires several perspectives in understanding its causes and consequences. Focus on the topic is largely centred around questions of material deprivation. However, as poverty and inequality are inextricably linked to questions of access and inclusion, a holistic approach is required. Consequently, we explore how imposed relational asymmetries which manifest as differences in the ability to exercise personal agency and in turn, engender wealth inequalities, affect social cooperation in future interactions. To do this, we generate wealth inequalities through two Prisoner’s Dilemma games, where one party is excluded from participating in the determination of the outcomes of the game. The effects of this asymmetry in social participation on ex post cooperation is examined using a Public Goods game. We find that the presence of prior asymmetric influence in social decision-making subsequently reduces contributions to the public good, independent of endowment level. This reduction in social welfare is driven by the under-contribution from players who were excluded in prior social interactions. Simply put, the data shows that a history of social exclusion reduces subsequent public goods provision, independent of material inequality.