Work

Fictional Money, Real Costs: Impacts of Financial Salience on Disadvantaged Students

Year: 2022
Type: article
Abstract: Disadvantaged students perform differentially worse when randomly given a financially salient mathematics exam. For students with socioeconomic indicators below the national median, a 10 percentage point increase in the share of monetary themed questions depresses exam performance by 0.026 standard deviations, about 6 percent of their performance gap. Using question-level data, I confirm the role of financial salience by comparing performance on monetary and highly similar non-monetary questions. Leveraging the randomized ordering of questions, I identify an effect on subsequent questions, providing evidence that the attention capture effects of poverty affect policy relevant outcomes outside of experimental settings. (JEL G53, I21, I24, I32, J13, O15)
Language: English
Subfield: Education
Open Access status: bronze
OpenAlex ID: W4283360615
FWCI: 28.57
Cites: 60
Cited by: 59
Related to: 10