Poverty Impedes Cognitive Function
Anandi Mani, Sendhil Mullainathan, Eldar Shafir, Jiaying Zhao
Science · 2013
Abstract
Tests the hypothesis that poverty itself—not just correlated traits—taxes cognitive capacity, by showing that being preoccupied with financial scarcity leaves fewer mental resources for other tasks.
Methodology
Combines lab experiments (shoppers primed to think about a hypothetical financial problem, easy vs. hard) with a natural field study of Indian sugarcane farmers tested before harvest (poor) and after harvest (relatively rich), holding the person constant.
Findings
Financial worry sharply reduced performance on fluid-intelligence and cognitive-control tasks; the same farmers scored substantially higher after harvest than before. The effect is large—on the order of losing 13 IQ points or a full night's sleep—implying scarcity captures attention and degrades decision-making.
Applied nudge
Design for depleted bandwidth among stressed or low-income users: radically simplify, reduce steps, send timely reminders, and avoid decisions that assume abundant attention.
Citation
Mani, A., Mullainathan, S., Shafir, E., & Zhao, J. (2013). Poverty impedes cognitive function. Science, 341(6149), 976-980.
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