Stress is often perceived as a hindrance, but a study by economists suggests that, in certain cases, it can actually boost performance. Students exposed to stressful topics—such as unemployment or the mental health consequences of the pandemic—respond by sharpening their focus and improving their performance.
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According to a report by the World Health Organisation (WHO) and the International Labour Organisation (ILO), work-related depression and anxiety result in the loss of 12 billion workdays annually, costing the global economy nearly $1 trillion. This highlights the vast impact of mental health disorders and the urgency for action. Paradoxically, economic researchers Timothée Demont, Daniela Horta Sáenz, and Eva Raiber demonstrate that stress can, depending on the context, act as a catalyst for performance, transforming stressful situations into challenges to be tackled. For instance, concerns about job insecurity or awareness of the ecological crisis can sometimes have beneficial effects—provided there is a clear and attainable goal—similar to an actor overcome with stage fright before delivering their best performance. However, responses to stress vary, and performance gaps can widen based on socio-economic background.
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Dialogues économiques is a digital journal published by the Aix-Marseille School of Economics (AMU, CNRS, EHESS, Centrale Méditerranée). A gateway between academic research and society, Dialogues économiques provides all citizens with the keys to economic reasoning. Articles are published every two weeks.
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Most previous studies on the effects of stress on cognitive performance have shown that resource scarcity leads to diminished abilities. For example, behavioural economists Mani, Mullainathan, Shafir, and Zhao argue that a lack of money or time hampers effective decision-making. This has been particularly observed among farmers in Tamil Nadu, India, where poverty imposes a cognitive burden that weakens attention and reduces performance.1
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Article originally published in Dialogues Économiques on March 19, 2025.
Reference: Demont, T., Horta-Sáenz, D., Raiber, E., 2024, "Exposure to worrisome topics can increase cognitive performance when incentivized by a performance goal". Scientific Reports, 14(1), 1204.
Photo credit: Photo by Niklas Hamann on Unsplash
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