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» Poverty and decision-making: How behavioural science can improve opportunity in the UK | The Behavioural Insights Team

See on Scoop.itBounded Rationality and Beyond

A third of the UK population spent at least one year in relative income poverty between 2011 and 2014. Traditionally policymakers and anti-poverty organisations such as the Joseph Rowntree Foundation (JRF) have focused on boosting people’s economic capital (e.g., income) and human capital (e.g., educational attainment) to reduce poverty. While investments in these areas have led to important gains in opportunity for many Britons, emerging research from behavioural science shows that other less tangible resources, which derive from psychological, social and cultural processes, significantly influence people’s ability to overcome disadvantage. BIT was commissioned by JRF to examine the role of individual decisions in shaping people’s experiences of poverty in the UK and to identify the drivers of these decisions. This reflects JRF’s interest in looking beyond traditional, structural drivers of poverty. Our findings, based on a review of the published literature, are presented in a new report, launched today. Building on the concepts of economic and human capital, our report proposes a more expansive capital-based model of poverty and decision-making, encompassing environmental, social, character and cognitive capital (Figure 1). For example, an individual may use their social capital (e.g., trusted social connections) to identify labour market opportunities; but being low in environmental capital (e.g., overcrowded housing) may reduce opportunities for parents to talk with their child in ways that build their human capital (e.g., speech development).


Time is real? I think not

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