New Economics Papers
on Neuroeconomics
Issue of 2012‒12‒15
three papers chosen by

  1. “Neuro”‐Observational Learning By Kfir Eliaz; Ariel Rubinstein
  2. Job displacement and labor market outcomes by skill level By David Seim
  3. Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes By James J. Heckman; Rodrigo Pinto; Peter A. Savelyev

  1. By: Kfir Eliaz; Ariel Rubinstein
    Date: 2012
  2. By: David Seim
    Abstract: This paper investigates the effects of displacement on outcomes such as annual earnings, unemployment, wages and hours worked. It relies on previously unexplored administrative data on all displaced workers in Sweden in 2002, 2003 and 2004 which are linked to employer-employee matched data at the individual level. By linking the data to military enlistment records, the paper assesses the selection into displacement and finds that workers with low cognitive and noncognitive skills are significantly more likely to be displaced than high-skilled workers. The analysis of displacement effects shows evidence of large and long-lasting welfare costs from displacement. Moreover, studying the heterogenous impacts of job displacement in terms of cognitive and noncognitive skills reveals that although workers with high skills fare better than low-skilled workers in absolute terms, there are no significant differences in the recovery rates between skill groups. Finally, by using administrative data on displacements, it is possible to assess quantitatively the bias that results from not being able to separate quits from layoffs in earlier studies
    Keywords: job displacement, cognitive and noncognitive skills, employer-employee data
    JEL: J60 J63 J65 I21 C23
    Date: 2012–12–03
  3. By: James J. Heckman; Rodrigo Pinto; Peter A. Savelyev
    Abstract: A growing literature establishes that high quality early childhood interventions targeted toward disadvantaged children have substantial impacts on later life outcomes. Little is known about the mechanisms producing these impacts. This paper uses longitudinal data on cognitive and personality traits from an experimental evaluation of the influential Perry Preschool program to analyze the channels through which the program boosted both male and female participant outcomes. Experimentally induced changes in personality traits explain a sizable portion of adult treatment effects.
    JEL: I21 I28 I29 J13 J15 J16 J24 O15
    Date: 2012–11

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.