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on Neuroeconomics |
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Issue of 2013‒02‒03
three papers chosen by |
| By: | Lindsey Macmillan (Department of Quantitative Social Science, Institute of Education, University of London) |
| Abstract: | Previous work has shown that there is a significant intergenerational correlation of worklessness for the UK which varies across local labour markets (Macmillan, 2011). Using a decomposition from the intergenerational mobility literature (Blanden et. al, 2007), this research is the first to consider the drivers of this transmission. I consider the role of four sets of characteristics of the son in childhood; his non-cognitive skills, cognition, behavioural outcomes and educational attainment, to assess which characteristics are important predictors of later workless spells and whether those characteristics are associated with growing up with a workless father. The wide range of characteristics can only account for 12% of the intergenerational transmission, with the vast majority remaining unaccounted for. While cognition and education dominate the intergenerational transmission of incomes, non-cognitive skills and behavioural outcomes play a more important role in the intergenerational transmission of worklessness. Many of the characteristics considered become increasingly important predictors of future worklessness as the unemployment rate in the local labour market increases. This descriptive analysis suggests that there are benefits to improving the soft skills of the most disadvantaged children, alongside their attainment, to ensure a successful connection with the labour market in adulthood. |
| Keywords: | : Intergenerational mobility, unemployment, children, skills. |
| JEL: | J62 J64 J13 J31 |
| Date: | 2013–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1301&r=neu |
| By: | Doepke, Matthias (Northwestern University); Zilibotti, Fabrizio (University of Zurich) |
| Abstract: | We construct a theory of intergenerational preference transmission that rationalizes the choice between alternative parenting styles (related to Baumrind 1967). Parents maximize an objective function that combines Beckerian and paternalistic altruism towards children. They can affect their children's choices via two channels: either by influencing their preferences or by imposing direct restrictions on their choice sets. Different parenting styles (authoritarian, authoritative, and permissive) emerge as equilibrium outcomes, and are affected both by parental preferences and by the socioeconomic environment. We consider two applications: patience and risk aversion. We argue that parenting styles may be important for explaining why different groups or societies develop different attitudes towards human capital formation, entrepreneurship, and innovation. |
| Keywords: | intergenerational preference transmission, altruism, paternalism, entrepreneurship, innovation |
| JEL: | D10 J10 O10 O40 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7108&r=neu |
| By: | van der Heijden, Eline (Tilburg University); Klein, Tobias J. (Tilburg University); Müller, Wieland (University of Vienna); Potters, Jan (Tilburg University) |
| Abstract: | We confront a representative sample of one 1,102 Dutch individuals with a series of incentivized investment decisions and also elicit their time preferences. There are two treatments that differ in the frequency at which individuals decide about the invested amount. The low frequency treatment stimulates decision makers to frame a sequence of risky decisions broadly rather than narrowly. We find that the framing effect is significantly larger for impatient than for patient individuals. This result is robust to controlling for various economic and demographic variables and for cognitive ability. |
| Keywords: | framing, choice under risk, time preference, experiment |
| JEL: | C93 D03 D81 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7085&r=neu |