nep-neu New Economics Papers
on Neuroeconomics
Issue of 2022‒10‒31
four papers chosen by
Daniel Houser
George Mason University

  1. Parenting Styles, Socioeconomic Status and (Non-)Cognitive Skills By Philipp Kugler; Martin Kroczek; Anne Zühlke
  2. Zero-Ending Prices, Cognitive Convenience, and Price Rigidity By Snir, Avichai; Chen, Haipeng (Allan); Levy, Daniel
  3. Gender Differences in Socio-Emotional Skills and Economic Outcomes : New Evidencefrom 17 African Countries By Ajayi,Kehinde; Das,Smita; Delavallade,Clara Anne; Ketema,Tigist Assefa; Rouanet,Lea Marie
  4. A Note on Motivated Cognition and Discriminatory Beliefs By Lasse Stötzer; Florian Zimmermann

  1. By: Philipp Kugler; Martin Kroczek; Anne Zühlke
    Abstract: This paper analyzes the role of parenting styles, a recent topic in the economic literature. Using a novel latent class model, we investigate which parenting styles can be observed in the data and how parenting styles are related to parents’ socioeconomic status and household composition. We identify four parenting styles. An authoritarian and an authoritative style closely resemble the styles proposed by psychologists. The two other styles are variations of these styles. The parenting styles are strongly associated with household income, education and whether a child is an only child. The results suggest that constraints in both time and (non-)cognitive skills of the parents restrict their choice. We find that children’s skills, in particular non-cognitive skills, are strongly associated with the parenting style. Parenting styles that are associated with low household income and having more than one child are associated with lower skills of the child. Therefore, our results indicate that parenting styles might be an important factor in explaining the skill gap in early childhood between children from different socioeconomic origins.
    Keywords: human capital, skills, parenting, child rearing, parenting style, social mobility, socio-economic status, topic modeling
    JEL: J13 J24 J62
    Date: 2022–07–22
  2. By: Snir, Avichai; Chen, Haipeng (Allan); Levy, Daniel
    Abstract: We assess the role of cognitive convenience in the popularity and rigidity of 0-ending prices in convenience settings. Studies show that 0-ending prices are common at convenience stores because of the transaction convenience that 0-ending prices offer. Using large store-level retail CPI data, we find that 0-ending prices are popular and rigid at convenience stores even when they offer little transaction convenience. We corroborate these findings with two large retail scanner price datasets from Dominick’s and Nielsen. In Dominick’s data, we find that there are more 0-endings in the prices of the items in the front-end candies category than in any other category, even though these prices do not affect the convenience of the consumer’s check-out transaction. In addition, in both Dominick’s and Nielsen datasets, we find that 0-ending prices have a positive effect on demand. Ruling out consumer antagonism and retailers’ use of heuristics in pricing, we conclude that 0-ending prices are popular and rigid, and that they increase demand in convenience settings, not only for their transaction convenience but also for the cognitive convenience they offer.
    Keywords: Cognitive Convenience; Transaction Convenience; Price Rigidity; Price Stickiness; Sticky Prices; Rigid Prices; 0-Ending Prices; Round Prices; Convenient Prices; 9-Ending Prices; Just Below Prices; Psychological Prices; Price Points
    JEL: D90 E31 L16 M30
    Date: 2022–09–21
  3. By: Ajayi,Kehinde; Das,Smita; Delavallade,Clara Anne; Ketema,Tigist Assefa; Rouanet,Lea Marie
    Abstract: Using data from 41,873 individuals across 17 African countries and 13 studies, this paper mapsdata from various self-reported scales to 10 socio-emotional skills and examine gender differences in these skills andtheir relationship with education and earnings. Apart from self-control, the findings show a significant male advantagein self-reported skills—men have an aggregate socio-emotional skill level 0.151 standard deviations higherthan women, equivalent to the socio-emotional skill gained over 5.6 years of education. This is robust to controllingfor positive self-concept. Closing the gender gap in education would close 17percent of this gap. While overallsocio-emotional skill and education are positively correlated for both men and women, women do not have apositive correlation with education for some individual socio-emotional skills. The male advantage insocio-emotional skills increases at higher education levels. Socio-emotional skills are associated with higher earnings,especially for women. However, the specific skills associated with higher earnings differ by gender.Interpersonal skills are more strongly correlated with earnings for women than for men, and measures of theseskills are often underrepresented, which indicates a key direction for future research. The paper further examinesdifferences in the relationship between socio-emotional skills and earnings by levels of education and occupation.It discusses the implications of these results for interventions seeking to hone women’s socio-emotional skillsfor labor market success and to address the gender norms that may perpetuate gaps in socio-emotional skills.
    Date: 2022–10–03
  4. By: Lasse Stötzer (Institute on Behavior and Inequality); Florian Zimmermann (University of Bonn and Instituteon Behavior and Inequality)
    Abstract: In this note, we provide evidence that motivated reasoning can be a source of discriminatory beliefs. We employ a representative survey experiment where we exogenously manipulate the presence of a need for justi cation of anti-social behavior towards an out-group. We provide causal evidence that survey participants devalue members of an out-group to justify taking away money from the group. Our results speak to a long-standing debate on the causes of racism and discrimination and suggest an important role of motivated cognition.
    Keywords: discrimination, stereotypes, racism, motivated reasoning, beliefs
    JEL: D01
    Date: 2022–10

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