|
on Neuroeconomics |
|
Issue of 2011‒11‒07
three papers chosen by |
| By: | Grönqvist, Erik (Institute for Labour Market Policy Evaluation (IFAU)); Vlachos, Jonas (Research Institute of Industrial Economics (IFN)); Öckert, Björn (Institute for Labour Market Policy Evaluation (IFAU)) |
| Abstract: | We study the intergenerational transmission of cognitive and non-cognitive abilities between fathers and sons using population-wide enlistment data. Measurement error bias in fathers’ ability measures is corrected for using two sets of instruments. Results suggest that previous estimates of intergenerational ability correlations are biased downwards; once corrected for, the non-cognitive correlation is close to that of cognitive ability. We also predict mothers’ abilities and find the mother-son cognitive ability correlation to be stronger than the father-son correlation. Finally, educational attainment and labor market outcomes of both sons and daughters are strongly related to both parents’ cognitive and non-cognitive abilities. |
| Keywords: | Intergenerational Ability Correlations; Cognitive Ability; Non-Cognitive Ability; Measurement Error Bias |
| JEL: | I00 J13 J24 |
| Date: | 2011–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0884&r=neu |
| By: | Ondrej Rydval (Max Planck Institute of Economics, Jena) |
| Abstract: | We extend evidence on the interaction between financial incentives and cognitive abilities by focusing on the effect of task-specific abilities. In a memory-intensive task situated in an accounting context, the effect of accounting education on performance is stronger under financial incentives as compared to flat rate pay. Subjects with more accounting education respond stronger to financial incentives. Hence using incentives efficiently may involve targeting them at high-ability individuals. More generally, taking into account the incentive-ability interaction seems important when interpreting observed behavior in cognitively demanding lab and field economic environments. |
| Keywords: | Financial incentives, Cognitive ability, Performance, Experiment |
| JEL: | C81 C91 C93 D83 |
| Date: | 2011–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-050&r=neu |
| By: | Silke Anger (DIW Berlin) |
| Abstract: | This study examines cognitive and non-cognitive skills and their transmission from parents to children as one potential candidate to explain the intergenerational link of socio-economic status. Using representative data from the German Socio-Economic Panel Study, we contrast the impact of parental cognitive abilities (fluid intelligence, crystallized intelligence) and personality traits (Big Five, locus of control) on their adolescent and young adult children’s traits with the effects of parental background and childhood environment. While for both age groups intelligence and personal traits were found to be transmitted from parents to their children, there are large discrepancies with respect to the age group and the type of skill. The intergenerational transmission effect was found to be relatively small for adolescent children, with correlations between 0.12 and 0.24, whereas the parent-child correlation in the sample of adult children was between 0.19 and 0.27 for non-cognitive skills, and up to 0.56 for cognitive skills. Thus, the skill gradient increases with the age of the child. Furthermore, the skill transmission effects are virtually unchanged by controlling for childhood environment or parental education, suggesting that the socio-economic status of the family does not play a mediating role in the intergenerational transmission of intelligence and personality traits. The finding that non-cognitive skills are not as strongly transmitted as cognitive skills, suggests that there is more room for external (non-parental) influences in the formation of personal traits. Hence, it is more promising for policy makers to focus on shaping children’s noncognitive skills to promote intergenerational mobility. Intergenerational correlations of cognitive skills in Germany are roughly the same or slightly stronger than those found by previous studies for other countries with different institutional settings. Intergenerational correlations of non-cognitive skills revealed for Germany seem to be considerably higher than the ones found for the U.S. Hence, skill transmission does not seem to be able to explain cross-country differences in socio-economic mobility. |
| Keywords: | cognitive abilities, personality, intergenerational transmission, skill formation |
| JEL: | J10 J24 I20 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2011-023&r=neu |