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on Neuroeconomics |
| By: | Ollikainen, Jani-Petteri; Pekkarinen, Tuomas; Uusitalo, Roope; Virtanen, Hanna |
| Abstract: | We examine the effects of secondary education on cognitive and non-cognitive skills using admission cutoffs to general secondary schools. We measure these skills using the Finnish Defence Forces Basic Skills Test, which, due to compulsory military service, covers the vast majority of Finnish men and serves as a strong predictor of later labor market success. We find that the large differences in the average skills across men that differ in their schooling when entering military service are due to selection rather than causal effects of secondary education on either cognitive or non-cognitive skills. |
| Keywords: | regression discontinuity; secondary schooling; primary non-cognitive skills |
| JEL: | J24 I21 |
| Date: | 2024–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126238 |
| By: | Bagues, Manuel (University of Warwick); Villa, Carmen (University of Warwick) |
| Abstract: | Over the past decades, many European countries have raised the minimum legal drinking age (MLDA) from 16 to 18 years. This study provides novel evidence of the impact of this policy on educational outcomes by exploiting the staggered timing of MLDA changes across Spanish regions. Raising the MLDA decreased alcohol consumption among adolescents aged 14–17 by 8 to 18% and improved their exam performance by 4% of a standard deviation. This effect appears driven by alcohol's direct impact on cognitive ability, as we find no significant changes in potential mediators like use of other substances or time spent on leisure activities, including socialising, sports, gaming, or internet use. We also observe a decrease in tranquilliser and sleeping pill use, suggesting improved mental health. Our findings indicate that reducing teenage alcohol consumption represents a significant opportunity to improve educational outcomes in Europe, where youth drinking rates remain notably high. |
| Keywords: | alcohol, adolescence, minimum legal drinking age, PISA |
| JEL: | I18 I12 I21 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17507 |
| By: | Natal, Arnaud (University of Bordeaux); Nordman, Christophe Jalil (IRD, DIAL, Paris-Dauphine) |
| Abstract: | The relationship between personal debt and cognition has received limited attention, especially, in developing countries. This study focuses on India and examines the relationship between Big Five personality traits, cognitive skills (math, literacy, and Raven scores), and financial decision-making, specifically debt negotiation and debt management, while considering the weight of social identity (i.e., caste and gender). Using a panel dataset built from an original household survey conducted in 2016-17 and 2020-21 in rural Tamil Nadu and employing multivariate correlation probit analysis, we find the following. Firstly, conscientiousness is an advantage in the negotiation and management of debt, particularly for non-Dalit women, suggesting that, in a rural patriarchal context, women leverage personality traits to overcome the constraints of social identity. Secondly, emotional stability is a disadvantage in both debt negotiation and management. Thirdly, the role of cognition and in particular the Raven score is ambiguous (negative correlation with debt negotiation but positive correlation with debt management). Our results suggest that training programmes designed to improve conscientiousness, when integrated into broader macroeconomic policies, could help individuals secure better loan conditions and avoid repayment difficulties. |
| Keywords: | gender, cognitive skills, personality traits, Big Five, caste, social identity |
| JEL: | D14 D91 G51 O1 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17482 |
| By: | Challoumis, Constantinos |
| Abstract: | While some may view artificial intelligence as a contemporary phenomenon, its roots sink deep into the annals of human ingenuity. Central to the understanding of this domain is the distinction between artificial intelligence (AI) and machine learning (ML). AI manifests as a complex branch of computer science that endeavors to emulate human cognitive functions, thereby enabling machines to perform tasks typically requiring human intelligence, such as understanding language, recognizing patterns, and making decisions. On the other hand, machine learning is a subset of AI, focusing primarily on the development of algorithms that allow computers to learn from and make predictions based on data. As data accumulates, these algorithms enhance their performance autonomously—without explicit programming, symbolizing a fundamental shift in our interaction with technology. |
| Keywords: | AI revolution, monetary landscape, job opportunities |
| JEL: | F00 H0 Z0 |
| Date: | 2024–11–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122734 |
| By: | Li, Yanan (Beijing Normal University); Menon, Nidhiya (Brandeis University); Sunder, Naveen (Bentley University) |
| Abstract: | Attending kindergarten (KG) has been shown to have persistent benefits, but the peer effects of KG remain largely unexplored. We fill this gap in the literature by using nationally representative panel data on a cohort of middle-school students (grade 7) in China. We demonstrate that when peers have had limited time to interact with one another (three to six months), there are no discernable effects of peer KG status. However, in the medium-term (14+ months), having a peer group with KG experience improves academic (math, English, and Chinese exam scores) and non-cognitive outcomes including mental health and social adjustment. These impacts are more pronounced among children from underprivileged families, and are explained by reallocation of student time and effort, a better classroom environment, improved friends' attitudes and behaviors, and pedagogically effective teacher-student interactions. The presence of these positive cross-peer spillovers indicates that the overall benefits of KG attendance are likely to be even higher than previously understood. |
| Keywords: | Kindergarten attendance, positive spillovers, cognitive and non-cognitive measures, mental health, middle-school, China |
| JEL: | I21 I24 I26 J13 J24 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17531 |
| By: | David Card; Eric Chyn; Laura Giuliano |
| Abstract: | Boys are less likely than girls to enter college, a gap that is often attributed to a lack of non-cognitive skills such as motivation and self-discipline. We study how being classified as gifted – determined by having an IQ score of 116 or higher – affects college entry rates of disadvantaged children in a large urban school district. For boys with IQ’s around the cutoff, gifted identification raises the college entry rate by 25-30 percentage points – enough to catch up with girls in the same IQ range. In contrast, we find small effects for girls. Looking at course-taking and grade outcomes in middle and high school, we find large effects of gifted status for boys that close most of the gaps with girls, but no detectable effects on standardized tests scores of either gender. Overall, we interpret the evidence as demonstrating that gifted services raise the non-cognitive skills of boys conditional on their cognitive skills, leading to gains in educational attainment. |
| JEL: | I21 I24 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33282 |