Relative deprivation as a cause of risky behaviors

Stark, Oded

doi:10.1080/0022250x.2019.1664508

Cited by 16 publications

(7 citation statements)

References 21 publications

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“…This strand of literature hence suggests that migration decisions are influenced by risk-taking attitudes. Meanwhile, Stark (2020) shows that RD could affect individuals' relative risk-aversion preferences. Put altogether, RD would have a direct and an indirect relation with migration decisions, the latter through altering individual's tolerance to risk.…”

Section: Data and Resultsmentioning

confidence: 99%

Proximity-Sensitive Relative Deprivation and International Migration Intentions

2022

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This paper aims to re-examine the relation between relative deprivation (RD) and international migration intentions when people demonstrate asymmetric proximity preferences towards higher-income reference individuals on the income ladder. We consider three cases: the conventional linear case, in which all comparisons with higher-income individuals have equal weight; the rising proximity preferences, in which individuals assign increasing weights to reference groups as they get closer on the income ladder; and when individuals are more sensitive to income changes of the far wealthier. We use Gallup’s individual-level survey data on 129 countries, between 2009 and 2017. We find that the international migration-RD relation depends on the proximity preferences along the income distribution and across risk-tolerance levels. The common wisdom that people migrate to enhance their relative positions is found robust only among the poorest and the more risk-tolerant populations, under different proximity preferences assumptions. This paper provides deeper understanding on how policies directed to reducing income inequality and poverty may impact migration outcomes in sending countries when the target population exhibits proximity-sensitive RD.

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Section: Data and Resultsmentioning

confidence: 99%

Proximity-Sensitive Relative Deprivation and International Migration Intentions

2022

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“…That is tough. (Hector,rural area,43) Economic research has indeed shown that relative deprivation is linked to risky behaviours, such as gambling (Stark, 2020), and that poverty can lead to increased engagement in criminal activities (Kawachi et al, 1999). However, it is important to consider why individuals from lower socio-economic backgrounds might be more inclined to gamble or commit crimes rather than pursue migration.…”

Section: Perceptions and Realities: The Risks And Motivations Of Lowe...mentioning

confidence: 99%

Immobility in Moldova: Beyond the migration paradigm

Bogdan

2024

International Migration

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This paper explores the motivations and barriers behind the decision of economically disadvantaged Moldovans to refrain from migrating for better economic prospects. Drawing on 30 qualitative interviews with voluntary stayers, it uncovers a range of individual‐level characteristics that impede migration aspirations. These findings highlight the heightened sensitivity of lower‐wage stayers to their perceived social status abroad, their limited adaptability to new cultures and environments and their lower willpower to endure the challenges of long‐term gains. Moreover, this paper sheds light on their contentment with modest material gains and their aversion to migration risks. At the structural level, it emphasizes how social inequalities act as barriers for specific social groups, particularly the economically disadvantaged. These empirical insights challenge prevailing assumptions about the dominance of economic costs and network abroad in migration decision‐making, offering a fresh perspective on the social factors and costs shaping stayers' choices.

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“…In particular, in Stark (2020) the interest was in identifying the attitude of people towards risk taking under the assumption that risk-taking behavior is conditioned by social preferences. To account for this, relative wealth was incorporated as a variable: a person's own wealth matters, but so does a comparison of a person's wealth to the wealth of others who are positioned higher up in the wealth distribution.…”

Section: Introductionmentioning

confidence: 99%

Can altruism lead to a willingness to take risks?

Stark

2023

The Journal of Mathematical Sociology

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I study attitudes towards risk taking in cases where a person relates to others positively, namely altruistically. This study is needed because it is unclear how altruism influences the inclination of an altruistic person to take risks. Will this person's risk-taking behavior differ if the utility of another person does not enter his utility function? Does being altruistic cause a person to become more reluctant to take risks because a risky undertaking turning sour will also damage his ability to make altruistic transfers? Or does altruism induce a person to resort to risky behavior because the reward for a successful outcome is amplified by the outcome facilitating a bigger transfer to the beneficiary of the altruistic act? Specifically, holding constant other variables, I ask: is an altruistic person more risk averse or less risk averse than a comparable person who is not altruistic? In response to this question, using a simple model in which preferences are represented by a logarithmic utility function, I show that an altruistic person who is an active donor (benefactor) is less risk averse than a comparable person who is not altruistic: altruism is a cause of greater willingness to take risks. The finding that the altruism trait causes greater willingness to take risks has not previously been noted in the existing literature.

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Relative deprivation as a cause of risky behaviors

Cited by 16 publications

References 21 publications

Proximity-Sensitive Relative Deprivation and International Migration Intentions

Proximity-Sensitive Relative Deprivation and International Migration Intentions

Immobility in Moldova: Beyond the migration paradigm

Can altruism lead to a willingness to take risks?

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