Browsing by Author "Choi, Youngran"

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    Participation in groups and its effects on self assessed income deciles
    (2004-04) Choi, Youngran; Nancy, Zapanta; Diokno, Benjamin
    This study was undertaken to assess the impact of social interaction, through joining groups, on self-assessed economic outcomes of individuals. Groups are often used as a resource allocating mechanism, its benefits coming either through the government or the private sector. However, for groups to function, the important elements-trust and willingness to do unpaid voluntary work are needed to be present. Regression results of empirical data, using self-assessed income deciles and membership in formal groups as dependent and independent variables respectively show that individuals from certain income rankings have the propensity to join certain groups based on their income characteristics as well as the nature of the groups themselves. It has also been uncovered that richer people join more groups than less affluent individuals. It has also been found out that joining groups does not preclude trust in others; rather it also depends on individual's own motivation or purpose. By ascertaining the types of individuals that join certain types of groups, the government can more narrowly pinpoint what kind of groups to encourage and even subsidize. Working through groups, we suggest that decentralization of the government can better serve its constituents due to closer interaction with community groups and organization, at the same time save scarce resources as the groups themselves distribute and monitor for its own members.