[Ed. – The biggest flaw in this study may be attributing reduced brain function (and in some cases volume, apparently) to income drops, instead of vice versa. Maybe people with subnormal brain activity find their incomes dropping more than people with normal activity do? Not clear how or if they tried to control for that distinction. At any rate, snarky headlines can be made out of it, if that’s your thing.]
[A] new international study finds that drops in income may … cause cognitive issues. According to researchers at the Inserm Research Center in Bordeaux, France, young adults who face annual income drops of 25% or more may be at a greater risk of developing thinking problems and diminished brain health later on in life. …
Interestingly, participants who experienced two or more income drops performed significantly worse on the tasks than those with no income drops. On average, the two or more income drop group scored 3.74 points (2.8%) worse.
“For reference, this poor performance is greater than what is normally seen due to one year in aging, which is equivalent to scoring worse by only 0.71 points on average or 0.53 percent,” Dr. Grasset explains.
Furthermore, participants within the group that experienced two or more income drops also took longer than others to complete the tasks.