2013
DOI: 10.1126/science.1238041
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Poverty Impedes Cognitive Function

Abstract: The poor often behave in less capable ways, which can further perpetuate poverty. We hypothesize that poverty directly impedes cognitive function and present two studies that test this hypothesis. First, we experimentally induced thoughts about finances and found that this reduces cognitive performance among poor but not in well-off participants. Second, we examined the cognitive function of farmers over the planting cycle. We found that the same farmer shows diminished cognitive performance before harvest, wh… Show more

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Cited by 2,124 publications
(1,900 citation statements)
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References 35 publications
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“…Tunneling, a drawback of focusing, however, is found to induce myopia, a phenomenon also well documented by behavioral economics. 15 See also Shah et al (2012), Mani et al (2013) Who is poor? Many instances of the subsequent empirical analysis use a poverty cutoff k = 40, implying an individual is considered poor if she suffers at least 40% of the (weighted) maximal possible deprivation.…”
mentioning
confidence: 99%
“…Tunneling, a drawback of focusing, however, is found to induce myopia, a phenomenon also well documented by behavioral economics. 15 See also Shah et al (2012), Mani et al (2013) Who is poor? Many instances of the subsequent empirical analysis use a poverty cutoff k = 40, implying an individual is considered poor if she suffers at least 40% of the (weighted) maximal possible deprivation.…”
mentioning
confidence: 99%
“…Research suggests that people who sense a scarcity of money -or scarcity of time or food -are prone to suffer from a "scarcity mind-set" Mani et al, 2013). This shapes behaviour and attitudes in debilitating or welfare-reducing ways.…”
Section: Scarce Commodity "Scarcity Mind-set"mentioning
confidence: 99%
“…Economic insecurity impedes cognitive capacity by taking up too much "mental bandwidth" (Mani et al, 2013). 4 Thus, for example, it has been found that Indian farmers score worse on standard intelligence tests before a harvest when money is scarce, and that feeling poor in terms of access to money lowers a person's IQ by as much as a night without sleep .…”
Section: Scarce Commodity "Scarcity Mind-set"mentioning
confidence: 99%
“…Research in psychology has argued that even small income shocks may have surprisingly large effects on cognitive capacity. For example, Mani et al (2013) demonstrate that inducing low-income people to think of financial distress reduces their cognitive capacity, and the authors argue that this is because of an increase in worries about finances. A link between liquidity constraints and emotional distress may explain why lowincome people sometimes make poor financial decisions (Shah, Mullainathan, and Shafir 2012).…”
Section: Introductionmentioning
confidence: 99%