[PDF] RESEARCHARTICLE Poverty Impedes Cognitive Function



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RESEARCHARTICLE Poverty Impedes Cognitive Function

Anandi Mani,1 Sendhil Mullainathan,2* Eldar Shafir,3* Jiaying Zhao4 The poor often behave in less capable ways, which can further perpetuate poverty We hypothesize that poverty directly impedes cognitive function a nd present two studies that test this hypothesis



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Poverty ImpedesCognitive Function

Anandi Mani,

1

Sendhil Mullainathan,

2 *Eldar Shafir, 3 *Jiaying Zhao 4 The pooroftenb ehavei nlessc apablewa ys,whichcan furtherperpetuatepoverty.Wehypothesize that povertydire ctlyimpedescognitivef unctionand presentt wostudiesthattest thish ypothes is. First, weexperimenta llyinducedthoughtsabout finances andfoundt hat thisreducescognitiv e performanceamong poorbutnoti nw ell-offp articipants. Second,w eexaminedt hecognitivef unction of farmerso vertheplanting cycle.Wefoundt hat thesamefarmer showsd iminishedc ognitive performanceb eforeharvest,whe npoor,as compared withafter har vest,whenrich.T hiscannotb e explained bydifferences intimeavailable, nutrition,or workeffort. Nor cani tbee xplainedwith stress:Althoughfarmers do show mores tressbef oreharvest,that doesnot accountfordiminished cognitive performance.Instead, itappears thatpoverty itselfreducescogniti ve capacity.Wesuggest that thisisbecaus ep overty-relatedco ncernsconsume mentalresources, leavinglessfor othertasks. These datapro videapreviouslyunexamined pers pectiveandh elp explainaspe ctrumofbehav io rs amongthe poor.W ediscusssome implications forpovertypolicy. A variety ofstud iespointtoacorrelation between povertya ndcounterproductive behavior.T hepoorusel essp reventive healthcare (1), failto adhereto drugregimens (2), are tardierandl essl ikelytok eepappointments (3,4), arel essproductiveworkers (5), lessatt en- tive parents( 6), andworse managersof their finances (7-9). Theseb ehaviorsaret roublingin theirownri ght,buttheyareparticularlytroubling because theycan furtherd eepenpoverty .Some explanations ofthis correlationf ocuson the environmentalconditionsof poverty.Predatory lendersinpoor areas,forexampl e,maycreatehigh- interest-rateborrowing,and unreliablet ranspor- tation cancause tard inessandabsenteeism.More generally,poverty may leavelessr oomfor error so thatt he"same"mistakecanlead toworse out- comes (10,11). Othere xplanationsfocusonthe characteristicsoft hepoort hemselves.Lowerl ev- els offormal education,for example,m aycreate misunderstandingsaboutcontractterms, andl ess parental attentionmay influencethe nextgen- eration's parentingstyle.

Wepropos eadiff erentk indofexplanation,

which focusesonthe mental processes required by poverty.Thepoor mustmanage sporadicin- come, juggleexpens es,andmakedif ficulttrade- offs.E venwhennot actuallymakingaf inancial distracting.The humancog nitive systemhas lim- ited capacity( 12-15). Preoccupationswith press- ing budgetaryconcernsleavefewer cognitive resources availablet oguidechoiceand action. Just asanair traf fic controllerfocusingonapo-tential collisionco urseispronetoneglectother planes inthe air, thepoor, whenattendingto monetary concerns,lose theircapacity togive otherproblems theirfullconsid eration.

This suggestsacausal,not merelycorrela-

tional, relationshipbetween povertya nd mental function. Wetestedthis usingt wovery diff erent laboratorystudy: We inducedricherandpoorer participants tothink about everydayfinancialde- mands.Wehy pothesize dthatfortherich ,these run-of-the-millf inancialsnags areoflittlecon- sequence. Fort hepoor,however, thesedemands can triggerpersistent anddistracting concerns (18,19). Thel aboratorystudyisde signedtoshow that similarlysizedfinancial challengescanhave differentcognitive impactsont hepoor andthe rich.B ut,the studycannotfullycaptureour hy- pothesisthatinthew orld,the po orface more challengingdemands.In principle,thecognitive impact insitu mayb ed ifferentgivent hatthe scale ofthe problemscanvarybetween ther ich

and thepoor. Perhapsthe richinthe worldf acelargermonetary pr oblemsthatalsocause greaterload.Perhapsthepoormanagetorestructuretheir

lives sothat theydo notface asmanycognitively challenging problems.Put simp ly,thelaboratory study,althoughillu stratingthemechanism, does nots howitsrelevancei nnaturals ettings.

Our secondstudyt akesadif ferentapproach

and allowsus toas sesswhat happenswhenin- that usedquasi-experimental variationi nactual wealth.I ndiansugarcanefarmer sreceive income annuallyatharv est timeandfindit hard tosmooth theirc onsumption(20). Asa result, theyexperi- ence cyclesof poverty - poor beforeharvest an d richeraft er.Thisallows ustocomparecognitive ca- versusri cher(post-harvest). Becauseharvestdate s are distributedarbitrarilyacross fa rmers, wecan furtherc ontrolforcalendar effe cts.In thisstudy, we didnot experimentallyinduce financial con- cerns; werelied onwhatever concernsoccurred naturally.Wewe recar efultocontrolf orotherp os- siblechang es,suchasnutr itionandwor keff ort.

Additionally,weaccountedfo rtheimpactofstre ss.

Any effectoncognitive performance thenobserved

wouldthus illustrate acausalrelationshipb etween actualincom eandcognitivefunctioninsitu.A s such,thet wostud iesarehighly complementary.

The laboratorystudyhasa greatdealofinternal

validity andillustrates ourproposed mechanism, whereasthefie ldstud ybooststheexternalvalid- ity ofth elabora torystudy.

Wenote two observationsaboutthesestudies.

First, theysidestep thed iscussionon whetherp ov-

erty isbest definedi nabso luteor relativeterms (21). Becauseo urhypothesisi sabouthowmon- etary concernstaxt hecognitiv esystem,we de- fine povertyb roadlyastheg apbetween one's needs andthe reso urcesavailabletofulfillthem.

Because thisis basedo ns ubjectiveneeds,it en-

compasseslow-incomei ndividualsbothin thede- velopingand thede veloped worldaswellasthose experiencingsharptra nsitoryincomeshocks ,such

RESEARCHARTICLE

1

7AL,UK .

2

DepartmentofEconomics ,Harv ardUniver sity,Cam-

bridge,M A02138, USA. 3

DepartmentofPsycholo gy and

WoodrowW ilsonSchoolofPublic andInt ernationalAff air s,

Princeton University,Princeton, NJ08540 ,U SA.

4

Department

of PsychologyandI nstitute forResources,Envir onmentand Sustainability,Uni versityofBritishC olumbia,Vancouver, British

Columbia V6T1 Z4,Canada.

*Correspondingauthor. E-mail:mullain@fas.harvard.e du (S.M.); shafir@princeton.edu(E.S.)

Accuracy

Raven's Matrices

Accuracy

Cognitive Control

Fig. 1.A ccuracyontheRave n's matricesandthec ognitivecontrolt asks intheharda nd easy conditions, forthe poor andtheri ch participantsi nexperiment 1.(Left) Performanceonthe horizontalbarsshow two-way interacti on(poorversusrich× hardversuseasy).*P<0.05,**P<0.01, ***P<0.001

30 AUGUST2013 VOL341 SCIENCEwww.sciencemag.org

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on May 16, 2017http://science.sciencemag.org/Downloaded from as theunemployed. Second,existing theoryand datasuggest apossibly cumulative long-term im- pact ofpoverty on cognition(22,23):Childhood poverty mayhinderb raindevelopment andeven- tually reducea dultcognitivecapacity (24).Our hypothesisand testsfocuson animmediate im- pacto fpovertyo ncognition:Budg etarypreoccu- pations canin realtimeimpedecognitive function. an immediatec ognitiveloadcaused byfinancial concerns. Whetherthismech anisma lsocontri b- utes tothe lo ng-termimpactsisa nopenquestion.

The LaboratoryStudies

The firststud yconsistedoff ourexperiments,

with shoppersat aN ewJers eymallwhop artic- ipated forpay (details areavailablein thes up- plementary materials).T hissamplee ncompasses a diverseincomeran ge, withthemedianhouse- holdincomeatroughly$70,000andalowerbound of roughly$20,000. This,broadly speaking,

provides ac ross-sectionofthe UnitedStates,w iththe poorin oursamp ler oughlycorresponding tothosein thelowerquartile orthird ofth eU .S.

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