The Psychological Lives of the Poor
Frank Schilbach, Heather Schofield, Sendhil Mullainathan
American Economic Review · 2016 · Volume 106 · Issue 5
Abstract
All individuals rely on a fundamental set of mental capacities and functions, or bandwidth, in their economic and non-economic lives. Yet, many factors associated with poverty, such as malnutrition, alcohol consumption, or sleep deprivation, may tax this capacity. Previous research has demonstrated that such taxes often significantly alter judgments, preferences, and decision-making. A more suggestive but growing body of evidence points toward potential effects on productivity and utility. Considering the lives of the poor through the lens of bandwidth may improve our understanding of potential causes and consequences of poverty.
Keywords
Consumer Economics: Theory, Neuroeconomics, Health and Inequality, Measurement and Analysis of Poverty, Human Capital, Skills, Occupational Choice, Labor Productivity
Enable JavaScript for citation tools and additional paper interactions.