Abstract:Recent research has found that competitive behavior measured in experiments strongly predicts individual differences in educational and labor market outcomes. However, there is no consensus on the underlying factors behind competitive behavior in these experiments. Are participants who compete more capable, more confident, and more tolerant of risk, or are they competing because they enjoy competition per se? In this study, we present an experiment designed to measure individualsâ€™ preferences for competition. Compared to previous work, our experiment rules out risk preferences by design, measures beliefs more precisely, and allows us to measure the magnitude of preferences for competition. In addition, we collect multiple decisions per participant, which lets us evaluate the impact of noisy decision-making. We find strong evidence that many individuals possess preferences for competition. Most participants are either reliably competition-seeking or competition averse, and their choices are highly consistent with expected utility maximization. We also find that preferences for competition depend on the number of competitors but not on the participantsâ€™ gender.Date:2022–08URL:http://d.repec.org/n?u=RePEc:nad:wpaper:20220078&r=
Does the Minimum Wage Affect Wage Inequality? A Study for the Six Largest Latin American EconomiesBy:Carlo Lombardo(CEDLAS-IIE-FCE-UNLP & CONICET); Lucía Ramirez-Veira (CEDLAS-IIE-FCE-UNLP & CONICET); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP & CONICET)
Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin Americaâ€™s six largest economies by exploiting the heterogeneity in the bite of the national minimum wage across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an equalizing effect also on the wage distribution of informal workers.JEL:J22 J31 J38 K31
The role of unobservable characteristics in friendship network formation.
By: Pablo Brañas-Garza (Universidad de Loyola Andalucia); Lorenzo Ductor (Department of Economic Theory and Economic History, University of Granada.); Jaromir Kovarik (‡Universidad del País Vasco UPV/EHU and University of West Bohemia)
Inbreeding homophily is a prevalent feature of human social networks with important individual and group-level social, economic, and health consequences. The literature has proposed an overwhelming number of dimensions along which human relationships might sort, without proposing a unified empirically-grounded framework for their categorization. We exploit rich data on a sample of University freshmen with very similar characteristic – age, race and education- and contrast the relative importance of observable vs. unobservables characteristics in their friendship formation. We employ Bayesian Model Averaging, a methodology explicitly designed to target model uncertainty and to assess the robustness of each candidate attribute while predicting friendships. We show that, while observable features such as assignment of students to sections, gender, and smoking are robust key determinants of whether two individuals befriend each other, unobservable attributes, such as personality, cognitive abilities, economic preferences, or socio-economic aspects, are largely sensible to the model specification, and are not important predictors of friendships.
Keywords: editorial boards, journals, concentration, power, busyness, innovation, impact
JEL: D8 D85 J7 J16 O30