We examine how chronic debt affects behavior by studying how a large, unanticipated debt-relief program affected psychological functioning and economic decision-making in beneficiaries. A charity granted low-income households debt relief worth up to Singapore dollars 5,000 (∼3 month’s household income). We exploited quasiexperimental variation in the structure of debt relief: For the same dollar amount of relief, some beneficiaries had more debt accounts eliminated, while others had fewer paid off. Comparing 196 beneficiaries before and after debt relief, and controlling for debt-relief amount, having an additional debt account paid off improves cognitive functioning by about one-quarter of a SD and reduces the likelihood of exhibiting anxiety by 11% and of present bias by 10%. To achieve the same effect on cognitive functioning of eliminating one debt account, a beneficiary must receive debt relief worth ∼1 month’s household income. There is no effect of debt-relief magnitude on anxiety and decision-making. We exclude training and calendar effects, debt-causing behaviors, and liquidity constraints as explanations. Instead, these results support the hypothesis that chronic debt impairs behavior because the mental-accounting costs of owing distinct debt accounts consume mental bandwidth. Poverty-alleviation policies aimed at the indebted poor should consider addressing mental accounting and bandwidth taxes.

Girls in the juvenile justice system have high rates of past sexual abuse. To better understand the relationship between sexual abuse and justice system involvement, we analyzed survey interviews with 169 young women involved or at risk of involvement with juvenile justice, comparing girls who experienced sexual abuse with those who did not. Girls experiencing sexual abuse had more negative mental health, school, substance use, risky sexual behavior, and delinquency outcomes. These findings highlight a need for interventions to assist girls who have experienced abuse and efforts to prevent abuse and improve child welfare and social service systems.

Research on intergenerational earnings mobility in less developed economies is lacking. This paper investigates the case of Singapore, a newly-industrialized economy in Asia. Interval regressions are employed because of grouped dependent variables. Instrumental variables address problems of respondent errors and unobserved permanent income. Still, the estimated intergenerational elasticity of between 0.23 and 0.28 is probably under-estimated because the study uses a survey of young respondents who reported contemporaneous incomes of parents. Transformation of the estimates using scales in recent comparative studies indicates that intergenerational earnings mobility in Singapore may be moderately low when compared internationally. Education as a means through which parents invest in their children's future earnings appears important. There are some small independent returns from schooling. Mobility does not appear to differ by ethnicity, sex or income. These findings have important implications for equity, development and policy in Singapore, which has rising income disparity, a maturing economy, and an educational system which is increasingly privately run. for their advice and suggestions at various stages of the research; Ai-Ling Chiam and Weiliang Chen for research assistance; and the editor and reviewers of BEJEAP for their helpful comments.Brought to you by | University of Connecticut Authenticated Download Date | 5/30/15 3:08 PM

The purpose of the study is to examine the impact of childhood maltreatment on youth offender recidivism in Singapore. The study used case file coding on a sample of 3,744 youth offenders, among whom about 6% had a childhood maltreatment history. The results showed that the Youth Level of Service/Case Management Inventory 2.0 (YLS/CMI 2.0) ratings significantly predicted recidivism for nonmaltreated youth offenders, but not for maltreated youth offenders. Using propensity score matching, the result from a Cox regression analysis showed that maltreated youth offenders were 1.38 times as likely as their nonmaltreated counterparts to reoffend with a follow-up period of up to 7.4 years. The results implied that the YLS/CMI 2.0 measures were insufficient for assessing the risk for recidivism for the maltreated youth offenders, and that other information is needed to help assessors use the professional override when making the overall risk ratings.

This study compared intergenerational earnings mobility in Singapore and the United States by replicating the limitations in the Singapore National Youth Survey on the U.S. Panel Study of Income Dynamics. The mean estimated earnings elasticities are almost identical: 0.26 in Singapore and 0.27 in the United States. Transformed to 0.45 and 0.47 respectively to reflect permanent status, mobility in the two countries is moderately low compared internationally. The finding of similar mobility is not surprising given that the economic realities, welfare systems, education regimes, and labor structures in the two countries are similar. Policy makers face the daunting challenge of overcoming immobility and inequality while maintaining global competitiveness.