Lived Experience and Economic Decision-Making in Contexts of Poverty: Jewish and Arab Families in Israel

Abstract

This study examined how families living in poverty in Israel experience economic decision-making within a neoliberal context that attributes poverty to individual failure. Using a mixed-methods design, the study combined 32 qualitative interviews with Jewish and Arab families with survey data from 560 participants living below the poverty line. Grounded theory and statistical analyses revealed that financial decisions were primarily survival-driven rather than irrational, with similar emotional experiences across groups. Arab participants reported a greater willingness to take financial risks, which was linked to perceived social approval. The study introduces social legitimacy as a “belonging resource” shaped by marginalization that influences economic decision-making.