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Poverty Impedes Cognitive Function

Anandi ManiDepartment of Economics, University of Warwick, Coventry CV4 7AL, UKSendhil MullainathanDepartment of Economics, Harvard University, Cambridge, MA 02138, USAEldar ShafirDepartment of Psychology and Woodrow Wilson School of Public and International Affairs, Princeton University, Princeton, NJ 08540, USAJiaying ZhaoDepartment of Psychology and Institute for Resources, Environment and Sustainability, University of British Columbia, Vancouver, British Columbia V6T 1Z4, Canada
2013en
ABI

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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, when poor, as compared with after harvest, when rich. This cannot be explained by differences in time available, nutrition, or work effort. Nor can it be explained with stress: Although farmers do show more stress before harvest, that does not account for diminished cognitive performance. Instead, it appears that poverty itself reduces cognitive capacity. We suggest that this is because poverty-related concerns consume mental resources, leaving less for other tasks. These data provide a previously unexamined perspective and help explain a spectrum of behaviors among the poor. We discuss some implications for poverty policy.

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