Will the Working Poor Invest in Human Capital? A Laboratory Experiment - SRDC

Will the Working Poor Invest in Human Capital? A Laboratory Experiment

Authors:Catherine EckelCathleen JohnsonClaude Montmarquette

This paper presents the results of a laboratory experiment involving approximately 250 subjects in the Montreal area. The experiment focused on three main questions:

(1) Will the working poor invest in various assets?

(2) Are these subjects willing to delay consumption for substantial returns?

(3) How do these subjects view risky choices?

Answering these questions will inform the key research question: Given the right incentive, will the working poor save to invest in human capital?

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