Grasping the effect of having too little: Poverty as predictor of cognitive depletion

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2017-08-17
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en
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Why do the poor often seem unable to make rational decisions? By means of statistical tests and World Values Survey data we attempt to discover what the impact is of poverty on people’s cognitive abilities. We identify three different types of poverty: Absolute, perceived and relative poverty. The results of this study show that each of these types of poverty may predict cognitive depletion. We conclude that it appears both poverty itself and the identity of poverty as grounded in society correspond to detrimental effects on people’s cognitive abilities. If poverty is a cause of cognitive depletion, this would have strong implications for policies targeting the poor aiming to eradicate poverty. To identify this causal link further study is required.
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Faculteit der Managementwetenschappen