Nudging and Inequality: Examining the Heterogeneous Effects of Behavioural Interventions on Low Socio-economic Status Individuals

Abstract

This article explores the heterogeneous effects of nudging interventions on individuals from low socio-economic status (SES) backgrounds, addressing a significant gap in the existing literature on behavioural policy. While nudges are widely implemented across various social domains due to their perceived efficiency and low cost, their effectiveness can vary greatly among different demographic groups. The analysis identifies three hypotheses regarding low SES individuals' responses to nudging: they may be more susceptible, less susceptible, or exhibit similar susceptibility to nudges compared to higher SES groups. By examining the implications of these disparities, the article underscores the potential for nudging strategies to unintentionally reinforce existing inequalities or stigmatize vulnerable populations. Ethical considerations are discussed, highlighting the necessity for policymakers to design nudges with an acute awareness of the unique barriers faced by low SES individuals. Ultimately, this research advocates for a shift away from the conventional ‘one-size-fits-all’ approach towards more nuanced, context-sensitive nudging interventions that effectively address the needs and challenges of marginalized groups, emphasizing the importance of targeted strategies in promoting equitable outcomes.