nep-neu New Economics Papers
on Neuroeconomics
Issue of 2021‒05‒24
four papers chosen by

  1. Air Pollution and Adult Cognition: Evidence from Brain Training By La Nauze, Andrea; Severnini, Edson R.
  2. Parental Gender Stereotypes and Student Wellbeing in China By Chu, Shuai; Zeng, Xiangquan; Zimmermann, Klaus F
  3. Cognitive Ability and Employee Mobility: Evidence from Swedish Microdata By Khashabi, Pooyan; Kretschmer, Tobias; Mohammadi, Ali; Raffiee, Joseph
  4. Trustors’ Disregard for Trustees Deciding Intuitively or Reflectively: Three Experiments on Time Constraints By Antonio Cabrales; Antonio M. Espín; Praveen Kujal; Stephen Rassenti

  1. By: La Nauze, Andrea (University of Queensland); Severnini, Edson R. (Carnegie Mellon University)
    Abstract: We exploit novel data from brain-training games to examine the impacts of air pollution on a comprehensive set of cognitive skills of adults. We find that exposure to particulate matter (PM2.5) impairs adult cognitive function, and that these effects are largest for those in prime working age. These results confirm a hypothesized mechanism for the impacts of air pollution on productivity. We also find that the cognitive effects are largest for new tasks and for those with low ability, suggesting that air pollution increases inequality in workforce productivity.
    Keywords: air pollution, particulate matter, cognition, cognitive skills
    JEL: Q53 J24 I14 I24
    Date: 2021–05
  2. By: Chu, Shuai; Zeng, Xiangquan; Zimmermann, Klaus F
    Abstract: Non-cognitive abilities are supposed to affect student's educational performance, who are challenged by parental expectations and norms. Parental gender stereotypes are shown to strongly decrease student wellbeing in China. Students are strongly more depressed, feeling blue, unhappy, not enjoying life and sad with no male-female differences while parental education does not matter.
    Keywords: gender identity; gender stereotypes; mental health; non-cognitive abilities; student wellbeing; subjective wellbeing
    JEL: I12 I26 I31 J16
    Date: 2020–11
  3. By: Khashabi, Pooyan; Kretschmer, Tobias; Mohammadi, Ali; Raffiee, Joseph
    Abstract: Cognitive ability and intelligence have been highlighted as the primary personnel measures used for hiring decisions, and gurus and popular business outlets consistently recommend that managers hire people smarter than themselves. However, the sustainability of such hiring strategies with respect to employee retention has not been fully investigated, largely due to data constraints. In this research note, we examine the relationship between cognitive ability and employee mobility, taking advantage of unique microdata from Sweden. Our empirical results show that higher cognitive ability is negatively associated with turnover, implying that cognitively-gifted employees settle with better employment options internally, compared to the external labor market. Nevertheless, when the employee has a significantly higher cognitive ability than their manager , employees are more likely to the firm. The results shed light on the relationship between cognitive ability and mobility, and highlight the role of managers for the success of hiring strategies based on cognitive ability.
    Keywords: cognitive ability; cognitive distance; employee mobility; Managers; retention
    Date: 2020–09
  4. By: Antonio Cabrales (Dept. of Economics, Universidad Carlos III de Madrid); Antonio M. Espín (Department of Social Anthropology, University of Granada and Loyola Behavioral Lab, Loyola Andalucía University); Praveen Kujal (Department of Economics, Middlesex University); Stephen Rassenti (Economic Science Institute, Chapman University)
    Abstract: Human decisions in the social domain are modulated by the interaction between intuitive and reflective processes. Requiring individuals to decide quickly or slowly triggers these processes and is thus likely to elicit different social behaviors. Meanwhile, time pressure has been associated with inefficiency in market settings and market regulation often requires individuals to delay their decisions via cooling-off periods. Yet, recent research suggests that people who make reflective decisions are met with distrust. If this extends to external time constraints, then forcing individuals to delay their decisions may be counterproductive in scenarios where trust considerations are important. In three Trust Game experiments (total n = 1,872), including within- and betweensubjects designs, we test whether individuals trust more someone who is forced to respond quickly (intuitively) or slowly (reflectively). We find that trustors do not adjust their behavior (or their beliefs) to the trustee’s time conditions. This seems to be an appropriate response because time constraints do not affect trustees’ behavior, at least when the game decisions are binary (trust vs. don’t trust; reciprocate vs. don’t reciprocate) and therefore mistakes cannot explain choices. Thus, delayed decisions per se do not seem to elicit distrust.
    Keywords: trust; trustworthiness; beliefs; reflection; dual process; intuition
    JEL: C90 C91 D91
    Date: 2021

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