Poverty Impedes Cognitive Function

Anandi Mani, Sendhil Mullainathan, Eldar Shafir, Jiaying Zhao

2013

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.

Type

Journal Article

Thematic Area

Financial Inclusion