Psychology & the Economy

• What are the implications of psychological research for the economy?

  • Psychological research can contribute to economic prosperity.
  • It may also impact the economy negatively.
• How much does absence from work cost the British economy?

  £77 billion
• How much does mental health absence cost the British economy?

  £26 billion
• What are the most common causes of work absence?

  Coughs, colds, headaches, back pain, stress, anxiety, and depression
• How many days are lost on average each year by a person suffering with stress, anxiety, and depression?

  12.5 million days
• How many days of absence does a person suffering from stress, anxiety, and depression lose on average?

  24 days each
• What percentage of people with schizophrenia are in full-time work?

  8%
• What is the percentage of full-time working mothers with a child under 1?

  24%
• What is the percentage of part-time working fathers with a child under 1?

  7%
• What is the relationship between psychology and the economy?

  • Psychology contributes to the development, promotion, and application for public good.
  • It relates to the production, distribution, and consumption of goods and services.
• What does economic psychology study?

  • Studies people's behavior and its impact on their economic lives.
  • Examines mental shortcuts like the availability heuristic.
• What is the availability heuristic?

  A mental shortcut for fast assessments based on given information
• How does the framing effect influence decision-making?

  Decisions can change based on whether a choice is presented as a loss or a gain
• What did Tversky et al (1986) study regarding treatment choices?

  They studied how framing affected choices between two treatments for a deadly disease
• How do different newspapers frame stories?

  • Daily Mail and The Sun: Negative framing, dramatic focus.
  • The Guardian: Neutral, factual, positive framing.
• What is the purpose of the Behavioural Insight Team?

  • To produce research for better governance.
  • To analyze behavior to adjust or change society.
• How can the placement of junk food in supermarkets influence behavior?

  Placing junk food at eye level can increase its purchase
• How can changing the language on debt letters encourage payment?

  Using personalized, handwritten notes can increase response rates
• What is the impact of changing organ donation policies?

  Opt-out policies can increase registration rates
• What is the highest impact statement for organ donation registration?

  “Would you have one?”
• How can research into attachment benefit the economy?

  • Highlights the importance of emotional care in early childhood.
  • Can lead to better outcomes and productivity.
• How does research into stress impact the economy?

  • Helps cope with life and workplace stress.
  • Increases productivity and reduces unnecessary absence.
• How can understanding social influence improve behavior?

  • Can reduce drink driving and smoking.
  • Raises awareness of domestic violence.
• How do drug therapy and talking therapies benefit the economy?

  • Research into effectiveness can lead to better treatment outcomes.
  • Reduces healthcare costs and improves productivity.