Socioeconomic differences in behaviour are pervasive and well documented, but their causes are not yet well understood. Here, we make the case that a cluster of behaviours is associated with lower socioeconomic status, which we call “the behavioural constellation of deprivation.” We propose that the relatively limited control associated with lower SES curtails the extent to which people can expect to realise deferred rewards, leading to more present-oriented behaviour in a range of domains. We illustrate this idea using the specific (...) factor of extrinsic mortality risk, an important factor in evolutionary theoretical models. We emphasise the idea that the present-oriented behaviours of the constellation are a contextually appropriate response to structural and ecological factors rather than a pathology or a failure of willpower. We highlight some principles from evolutionary theoretical models that can deepen our understanding of how socioeconomic inequalities can become amplified and embedded. These principles are that small initial disparities can lead to larger eventual inequalities, feedback loops can embed early-life circumstances, constraints can breed further constraints, and feedback loops can operate over generations. We discuss some of the mechanisms by which SES may influence behaviour. We then review how the contextually appropriate response perspective that we have outlined fits with other findings about control and temporal discounting. Finally, we discuss the implications of this interpretation for research and policy. (shrink)

This article explores the extent to which income inequality and income mobility—both considered indicators of economic inequality and conditions of formal regulatory institutions —facilitate or constrain the emergence of social entrepreneurship. Using 77,983 individual-level responses obtained from the Global Entrepreneurship Monitor survey of 26 countries, and supplementing with country-level data obtained from the Global Competitiveness Report of the World Economic Forum, our results from multilevel analyses demonstrate that country-level income inequality increases the likelihood of individual-level engagement in social entrepreneurship, while (...) income mobility decreases this likelihood. Further, income mobility negatively moderates the influence of income inequality on social entrepreneurship, such that the condition of low income mobility and high income inequality is a stronger predictor of social entrepreneurship. We discuss implications and limitations of our study, and we suggest avenues for future research. (shrink)

This article explores how and why high levels of income inequality result from configurations of different types of entrepreneurial activities and elements of the institutional context in a multicountry sample. A configurational approach is used to unpack the complexities associated with how income inequality arises from different types of entrepreneurial activities embedded in different institutional contexts associated with Whitley’s national business systems dimensions. The findings from fuzzy-set qualitative comparative analysis reveal that high levels of both high-growth and necessity entrepreneurial activity (...) are associated with income inequality in certain contexts that are characterized by distinct institutional complementarities. (shrink)

With the growth in income inequality now regarded as a crucial social issue, business and society scholars need to prepare themselves for the ambitious task of studying how corporate practices, intentionally or not, contribute to this trend. This article offers starting points for scholars wishing to explore this topic but lacking the necessary background for doing so. First, it offers suggestions as to finding the extant empirical work necessary for informed analysis. This is followed by an examination of alternate methods (...) of theory construction relevant to this topic, which transcend the limitations of the experimental science model of theory building. It then provides an example of a social science theory that exemplifies how empirically informed open theory can illuminate the dynamics behind growing inequality. The article concludes by suggesting that progress in this area requires embracing the spirit of earlier approaches to business and society scholarship while abandoning some outdated assumptions. (shrink)

We draw on the phenomenon of caste-based discrimination in India and signaling theory to assess whether microfinance credit scores improve the odds of female micropreneurs from a lower caste receiving loans and whether visible business characteristics further improve the odds of receiving microfinance loans. In a sample of 3,144 female microfinance loan applicants at a female-focused microloan enterprise in India, females from a lower caste, relative to those from a higher caste, have lower odds of receiving loans when their credit (...) scores are below the mean. However, when females from a lower caste have credit scores higher than the mean, the odds of receiving a loan increase. The practical effect of size is small but meaningful. Loan applicants from a lower caste with a visible signal of business ability do not improve their chances of receiving a loan relative to those from a higher caste. (shrink)

Despite the growing interest in understanding the effects of income inequality on economic growth, the influence of entrepreneurship-related institutional constraints on the inequality–growth association remains less understood. Drawing on an institutional constraints perspective in the context of startup entry regulation and credit constraints, we propose that under increasing income inequality, ease of startup or access to credit from the financial sector is positively associated with per capita economic growth. In a sample of 92 countries, robust to alternate specifications, we find (...) support for our hypotheses. Our findings contribute to the debates about the income inequality–growth nexus and imply potential policy interventions in the form of lower startup regulations and domestic credit provision from the financial sector to enhance economic growth under increasing economic inequality. (shrink)