International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

How to escape poverty? Based on the Perspective of Poverty Psychology
Hongwei Pang, Yanhong Gong, Xueli Sun, Shuangshuang Ma

Poverty is a major problem in the world. However, the internal mechanism of the occurrence and continuation of poverty has not been well explained. This paper tests the hypothesis of poverty trap based on the existing literature: poverty will cause the poor to have special psychological activities, which will affect their economic behavior, and ultimately lead to poor people can not escape poverty. Existing literature studies have shown that poverty can lead to tension and negative emotional state. At the same time, due to the limitation of attention and habitual behavior, people will make short-sighted and risk-averse decision-making. Therefore, there is a feedback cycle between poverty, negative psychology and economic decision-making, which makes the poor more poor and eventually develops into persistent poverty. Finally, this paper analyzes the mechanism of poverty transmission. Put forward the corresponding suggestion to the precision poverty alleviation.

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