nep-neu New Economics Papers
on Neuroeconomics
Issue of 2025–07–21
six papers chosen by
Daniel Houser, George Mason University


  1. Multigenerational Human Capital: How Grandparents Drive Cognitive Development Across Generations By Lund, Michael Borchgrevink; Munoz, Ismael G.; palloni, alberto
  2. Feedback, Confidence and Job Search Behavior By Tsegay Tekleselassie; Marc Witte; Jonas Radbruch; Lukas Hensel; Ingo E. Isphording
  3. Effects of the Minimum Wage on Employment of Young Adults with Cognitive Disabilities By Chiswick, Barry; Corman, Hope; Dave, Dhaval; Reichman, Nancy E.
  4. Cognitive Process Tracing in Algorithm Augmented Decision Making By Wohlschlegel, Julian; Jussupow, Ekaterina
  5. Intrinsic and Extrinsic Motivations in Organic Farming Practices and Subjective Well-Being: The Case of French Organic Farmers. By Laetitia Dillenseger; Thi Huong Nhai NguyenAnne Stenger; Thi Kim Cuong Pham; Anne Stenger
  6. Creativity and Task Perception. By Daniela Grieco; Patrick Llerena; Anne-Gaëlle Maltese

  1. By: Lund, Michael Borchgrevink; Munoz, Ismael G.; palloni, alberto
    Abstract: Do grandparents continue to play a vital role in their grandchildren’s lives even in societies where child health is no longer a primary concern? This study explores how the involvement of grandparents, traditionally associated with reproductive success, has evolved to support human capital formation. Drawing on the human capital framework, we rigorously model both grandparental and parental investments, examining their joint effects on cognitive development over time. Additionally, we explore how early nutritional status and cognitive abilities may influence subsequent investments. Using longitudinal data from the Young Lives study, which tracks children in Ethiopia, India, Vietnam, and Peru, we model the joint effect of support from grandparents and parental investments on children’s cognitive ability. We find that early childhood investments have a lasting impact on developmental outcomes. Our results demonstrate that grandparents’ involvement significantly enhances cognitive development in early childhood, with effects reaching nearly half the magnitude of parental investments. Moreover, these early influences indirectly shape cognitive outcomes later in childhood. Notably, their contribution amounts to half a year of schooling indirectly in Ethiopia, one-quarter in India, and around one month in Peru and Vietnam.
    Date: 2025–06–19
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:x853n_v1
  2. By: Tsegay Tekleselassie (Wellesley College); Marc Witte (Vrije Universiteit Amsterdam and Tinbergen Institute); Jonas Radbruch (Humboldt University Berlin); Lukas Hensel (Peking University); Ingo E. Isphording (IZA Institute of Labor Economics)
    Abstract: We conduct a field experiment with job seekers to investigate how feedback influences job search and labor market outcomes. Job seekers who receive feedback on their ability compared to other job seekers update their beliefs and increase their search effort. Specifically, initially underconfident individuals intensify their job search. In contrast, overconfident individuals do not adjust their behavior. Moreover, job seekers' willingness-to-pay (WTP) for feedback predicts treatment effects: only among underconfident individuals with positive WTP, we observe significant increases in both search effort and search success. We present suggestive evidence that this pattern arises from heterogeneity in how job seekers perceive the relevance of relative cognitive ability to job search returns. While the intervention appears cost-effective, job seekers' WTP remains insufficient to cover its costs.
    Keywords: job search, overconfidence, feedback, willingness-to-pay, field experiment
    JEL: C93 J22 J24 J64
    Date: 2025–03–14
    URL: https://d.repec.org/n?u=RePEc:tin:wpaper:20250019
  3. By: Chiswick, Barry; Corman, Hope; Dave, Dhaval; Reichman, Nancy E.
    Abstract: This study analyzes, for the first time, the effect of increases in the minimum wage on the labor market outcomes of working age adults with cognitive disabilities, a vulnerable and low-skilled sector of the actual and potential labor pool. Using data from the American Community Survey (2008-2023), we estimated effects of the minimum wage on employment, labor force participation, weeks worked, and hours worked among working age individuals with cognitive disabilities using a generalized difference-in-differences research design. We found that a higher effective minimum wage leads to reduced employment and labor force participation among individuals with cognitive disabilities but has no significant effect on labor supply at the intensive margin for this group. Adverse impacts were particularly pronounced for those with lower educational attainment. In contrast, we found no significant labor market effects of an increase in the minimum wage for individuals with physical disabilities or in the non-disabled population.
    Keywords: Cognitive Disability, Employment, Labor Market Outcomes, American Community Survey
    JEL: J14 J2
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1630
  4. By: Wohlschlegel, Julian; Jussupow, Ekaterina
    Abstract: In algorithm augmented decision-making, humans must successfully judge when to follow or reject algorithmic advice. Here, research showed that humans tend to reject algorithmic advice after experiencing algorithmic errors. This more severe response to incorrect algorithmic advice compared to incorrect human advice gave rise to the definition of, and research on, the phenomenon of algorithm aversion. However, empirical findings on algorithm aversion are conflicting and mostly focused on the decision itself while neglecting the cognitive processes from receiving incorrect advice to deciding. Using a multi-trial mouse tracking experiment, we aim to better understand the emergence of algorithm aversion by investigating decisional conflicts reflected in cognitive process data. Through our research, we mainly aim to contribute to research on algorithm aversion and the IS community’s methodological toolkit while our insights on decisional conflicts can further inform practitioners on how to responsibly enable and onboard users of algorithms.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:dar:wpaper:155418
  5. By: Laetitia Dillenseger; Thi Huong Nhai NguyenAnne Stenger; Thi Kim Cuong Pham; Anne Stenger
    Abstract: This paper examines how different motivations for engaging in organic farming may impact the farmers’ subjective well-being using a large-scale 2023 survey database from the French Agence Bio and leveraging the multi-dimension of well-being. Three measures capturing both affective and cognitive aspects of the well-being of farmers brought by their involvement in organic farming are used: Feelings of Pride, Satisfaction, and Feeling of Happiness. We focus on the effects of two types of motivations: intrinsic and extrinsic. Our results indicate that most intrinsic motivations, including concern about public health and human health, concern about the environment, and the request for autonomy in farming decisions, significantly and positively impact both the affective aspect (i.e., Pride, Happiness) and the cognitive aspect (i.e., Satisfaction) of farmers’ well-being. In contrast, extrinsic motivations related to the request for profits earned from fair prices and the response to demand incentives exert a negative influence. Besides motivations, our multi-dimensional well-being analyses also reveal that income, farming experience and difficulty, and production types significantly impact both affective and cognitive well-being. It is shown that social comparison (income) does not matter while social ties do. Finally, some aspects of farming characteristics and lifestyle factors (e.g., number of working hours and number of vacation days) contribute to cognitive well-being, while others (e.g., support from family and others) are associated with affective well-being.
    Keywords: cognitive well-being, affective well-being, intrinsic and extrinsic motivations, organic farming, pro-environmental decision, subjective well-being.
    JEL: D62 I31
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-20
  6. By: Daniela Grieco; Patrick Llerena; Anne-Gaëlle Maltese
    Abstract: This paper explores how individuals perceive open versus closed tasks in creative contexts and how this perception influences their choice between these tasks. We find that perceptions of task openness align with existing assumptions in the creativity literature regarding goal clarity and the freedom to explore. Additionally, we show that the likelihood of choosing an open task increases with the perceived freedom to explore, while it decreases with goal clarity, particularly when incentives are present. The effects of self-selection on creative performance are then investigated.
    Keywords: creativity; openness; perception; constraints; self-selection.
    JEL: C91 D91
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-16

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