Poor but not by choice(s): The persistence of cognitive biases across economic groups

While economic inequality continues to rise within countries, efforts to address it have been largely ineffective, particularly those involving behavioral approaches. It is often implied but not tested that patterns among low-income individuals may be a factor impeding behavioral interventions aimed at improving upward economic mobility. To test this, we assessed rates of ten cognitive biases across nearly 5,000 participants from 27 countries, comparing between low-income adults and individuals that had overcome financial disadvantages as children, known as positive deviants. Using discrete and complex models, we find robust evidence of no differences within or between groups or countries. We therefore conclude without reservation that choices impeded by cognitive biases alone cannot explain why some individuals do not experience upward economic mobility. Policies must combine both behavioral and structural interventions to improve financial well-being across populations

The psychology and policy of overcoming economic inequality

This project will use secondary data analysis to explore financial behaviors and economic inequality globally. We will investigate the patterns and predictors of positive deviance across and within 60 countries. Using this framework, we aim to better understand what incremental behaviors or individual factors might form the basis of more effective interventions to reduce financial inequality