nep-neu New Economics Papers
on Neuroeconomics
Issue of 2016‒08‒28
two papers chosen by

  1. The Influence of Personality Traits on Private Retirement Savings in Germany By Schäfer, Konrad C.
  2. Hidden Human Capital: Psychological Empowerment & Adolescent Girls’ Aspirations in India By Sanchari Roy; Matthew Morton; Shryana Bhattacharya

  1. By: Schäfer, Konrad C.
    Abstract: This paper analyzes private retirement savings, the amount for German individuals and how these savings are influenced by personality traits. With the 2002 to 2009 cross section of the Socio-Economic Panel for Germany (SOEP), it is investigated how the Big-Five and the Locus of Control influence the decision to have private retirement savings, and the estimated amount of these savings. Results indicate a positive effect for Extraversion and a negative effect for Agreeableness on the probability to have such savings. Extraversion also positively effects the size of retirement related savings as does having an more internal Locus of Control. Similar to the probability to have retirement savings Agreeableness also reduces the expected amount of such savings. Personality traits only seem to influence the retirement savings if the individual has scores further away from the average of the specific trait. Additionally regressions are implemented that include the personality measures as dummies to allow for non-linear effects. Furthermore, other types of wealth accumulation such as house related savings are investigated to study how the effects might differ for different types of wealth accumulation.
    Keywords: Non-cognitive skills; Big-Five; Locus of Control, retirement
    JEL: C34 C35 J26
    Date: 2016–08
  2. By: Sanchari Roy (Department of Economics, University of Sussex); Matthew Morton (World Bank); Shryana Bhattacharya (World Bank)
    Abstract: This paper studies the role of social-emotional or psychological capital in determining education and employment aspirations of adolescent girls and young women in India. We find that girls’ self-efficacy and mental health are important determinants of their educational and employment aspirations, suggesting that these hidden forms of human capital may serve as critical targets for interventions aiming to alter girls’ educational and economic trajectories. We also identify factors that correlate with girls’ level of self-efficacy, and find that an “enabling” and supportive family and community environment appears to be important
    Keywords: social-emotional skills, self-efficacy, aspirations, adolescents, youth, gender, labor market, education
    JEL: I20 I31 Z00
    Date: 2016–08

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