Cognition

Ivana Zelenika

Variety of studies point to a correlation between poverty and disadvantageous behaviour, which can further deepen poverty. For example, a preoccupation with financial decisions can be taxing and leave fewer cognitive resources available for other tasks. This causal relationship has been demonstrated by the scarcity experiments in the Mani et al. (2013), where similarly sized financial scenarios had different cognitive impacts on the poor and the rich.