nep-neu New Economics Papers
on Neuroeconomics
Issue of 2025–03–24
seven papers chosen by
Daniel Houser, George Mason University


  1. Revisiting the Dunning-Kruger Effect: Composite Measures and Heterogeneity by Gender By Adamecz, Anna; Ilieva, Radina; Shure, Nikki
  2. The Cognitive Gradient Innovation Index (CGII): A Scalable Framework for Measuring and Optimizing Innovation Across Cognitive Levels By Coupland, Stephen John Mr
  3. Nexus between Non-Cognitive and Cognitive Skills and their Joint effect on Labour Market Outcomes: Evidence from Youths aged 1525 years in Kenya By Onsomu, Carol Bisieri; Macharia, John; Mwangi, Stephie
  4. Multidimensional spatial memory: One action, two reference frames By Benjamin Pitt
  5. Credit Constraints in Higher Education Attendance: Longitudinal Evidence from Ethiopia By Eigbiremolen, Godstime O.; Orji, Anthony
  6. Cognitive and Socioemotional Skills in Low-Income Countries : Measurement and Associations with Schooling and Earnings By Danon, Alice Madeleine; Das, Jishnu; De Barros, Andreas; Filmer, Deon P.
  7. Impact of Teacher Qualification and Experience on Early Grade Achievement in Kenya By Sitati, Melap; Murebu, Rosemary; Ngugi, Rose; Onsomu, Eldah

  1. By: Adamecz, Anna (University College London); Ilieva, Radina (Informa Connect); Shure, Nikki (University College London)
    Abstract: The Dunning-Kruger effect (DKE) states that people with lower levels of the ability tend to self-assess their ability less accurately than people with relatively higher levels of the ability. Thus, the correlation between one's objective cognitive abilities and self-assessed abilities is higher at higher levels of objective cognitive abilities. There has been much debate as to whether this effect actually exists or is a statistical artefact. This paper replicates and extends Gignac and Zajenkowski (2020) and Dunkel, Nedelec, and van der Linden (2023) to test whether the DKE exists using several measures of ability and nationally representative data from a British birth cohort study. To do this, we construct a measure of objective cognitive abilities using 18 tests conducted at ages 5, 10, and 16, and a measure of subjective self-assessed abilities using estimates of school performance and being clever at ages 10 and 16. We replicate their models and show that the DKE exists in our secondary data. Importantly, we are the first to look at whether this relationship is heterogeneous by gender and find that while the self-assessment bias is gender specific, the DKE is not. The DKE comes from men relatively overestimating and women relatively underestimating their abilities.
    Keywords: Dunning-Kruger effect, overconfidence, underconfidence, gender differences
    JEL: J16 J24 D90
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17687
  2. By: Coupland, Stephen John Mr
    Abstract: The Cognitive Gradient Innovation Index (CGII) introduces a novel, interdisciplinary framework to measure and optimize innovation potential across a nine-level cognitive gradient. Unlike existing models, CGII integrates neurodiversity, whole-brain functionality, and modern psychological insights to create a comprehensive tool for assessing individual and systemic innovation capacity. By analyzing the contributions of neurotypical and neurodivergent individuals, and incorporating left-right brain dynamics alongside IQ, EQ, and personality traits, CGII addresses societal and organizational imbalances in innovation. It provides actionable pathways to bridge cognitive gaps, ensuring inclusive and sustainable progress. The CGII offers governments, organizations, and researchers a groundbreaking method for unlocking untapped human potential and fostering systemic transformation.
    Date: 2024–12–19
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:2u3e5_v1
  3. By: Onsomu, Carol Bisieri; Macharia, John; Mwangi, Stephie
    Abstract: Cognitive skills, rooted in specific neural networks, and soft skills, comprising personal traits, attitudes, and motivations, jointly contribute to workforce adaptability in the ever-changing landscape of modern workplaces. Recognizing their pivotal role in enhancing human capital quality, this study explored their joint impact on labour market outcomes, including probability of employment. Traditionally, economists have predominantly emphasized cognitive skills, overlooking the significance of the non-cognitive dimension. Within the context of Kenya, the government has launched initiatives to empower its youth for social and economic development and the education sector has expanded. Despite this background, these efforts fall short of producing adequately trained middle level human capital, hindering national progress. This situation is aggravated by the grave concern of a job market mismatch, resulting in soaring youth unemployment rates. The root cause of this mismatch can be partly traced to the limited inclusion of non-cognitive skills in education curricula, despite ongoing reforms largely centred on cognitive development. Both in education and the workplace, non-cognitive factors emerge as stronger predictors of success than their cognitive counterparts. Occupations demanding a blend of cognitive and non-cognitive skills offer higher employment prospects and wage premiums. A synthesis of these skill sets renders workers more valuable and better positioned for career advancement. Addressing the pressing issue of youth unemployment necessitates the alignment of youth skills with labour market demands. This research seeks to address two key challenges: gender disparity and the mismatch between youth skills and available job opportunities. Using binary logistic regression, this study identified factors influencing youth employment, with a specific focus on the interplay between skills and values. Key findings underscore the importance of both cognitive and non-cognitive skills in labour market outcomes, with individuals possessing a combination of these skills enjoying improved employment prospects and career success. The study also revealed that the complementarity between agreeableness and digital literacy skills has a positive impact on the employment likelihood of female youth. Marital status signifies stability and responsibility, while education levels augment an individuals competencies, enhancing competitiveness in the job market. Consequently, this study emphasizes the equivalence of personality traits and cognitive abilities in the eyes of employers and advocates for curriculum reform that integrates personality traits into employers selection criteria.
    Date: 2024–08–22
    URL: https://d.repec.org/n?u=RePEc:aer:wpaper:73a8e0de-ceec-4ca0-9ca1-9490e9490869
  4. By: Benjamin Pitt (IAST - Institute for Advanced Study in Toulouse)
    Abstract: Spatial cognition is fundamental to human behavior, but people differ in how they remember spatial relations, variably using body-based (egocentric) and environment-based (allocentric) spatial reference frames. Despite decades of study, the causes of this variation and flexibility in spatial memory remain unclear. Here we show that people spontaneously use different reference frames on different spatial axes at the same time. When remembering the placement of a target object in a 2-dimensional array, Indigenous Tsimane' adults preferentially used allocentric space to determine lateral placement and egocentric space to determine sagittal placement in the same action. This effect of axis was also significant among US university students, whose overall preference for egocentric space was stronger on the sagittal than lateral axis. These findings support a novel account of spatial cognitive diversity and suggest that people across cultures habitually integrate egocentric and allocentric spatial reference frames into the same action.
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04939902
  5. By: Eigbiremolen, Godstime O.; Orji, Anthony
    Abstract: This paper examines the household wealthhigher education attendance relationship and the evidence on credit constraints in post-secondary schooling. Using unique longitudinal data that link household wealth and measures of cognitive ability age 12 years to higher education attendance at age 1922 years, we differentiated short-term credit constraints from long-term credit constraints and directly tested the relative importance of short and long-term credit constraints in schooling decision. We found that both short-term and long-term credit constraints determine the household wealthhigher education attendance relationship. Therefore, we recommend complementing short-term policies like financial aid with long-term interventions that empower households to continue to invest in human capital development over the childs life cycle, which will crystalize in higher cognitive ability and readiness for higher education.
    Date: 2024–08–22
    URL: https://d.repec.org/n?u=RePEc:aer:wpaper:320a3a06-d397-4c66-9333-53725f8ec499
  6. By: Danon, Alice Madeleine; Das, Jishnu; De Barros, Andreas; Filmer, Deon P.
    Abstract: This paper assesses the reliability and validity of cognitive and socioemotional skills measures and investigates the correlation between schooling, skills acquisition, and labor earnings. The primary data from Pakistan incorporates two innovations related to measurement and sampling. On measurement, the paper develops and implements a battery of instruments intended to capture cognitive and socioemotional skills among young adults. On sampling, the paper uses a panel that follows respondents from their original rural locations in 2003 to their residences in 2018, a period over which 38 percent of the respondents left their native villages. In terms of their validity and reliability, our skills measures compare favorably to previous measurement attempts in low- and middle-income countries. The following are documented in the data: (a) more years of schooling are correlated with higher cognitive and socioemotional skills; (b) labor earnings are correlated with cognitive and socioemotional skills as well as years of schooling; and (c) the earnings-skills correlations depend on respondents’ migration status. The magnitudes of the correlations between schooling and skills on the one hand and earnings and skills on the other are consistent with a widespread concern that such skills are underproduced in the schooling system.
    Date: 2023–02–15
    URL: https://d.repec.org/n?u=RePEc:wbk:wbrwps:10309
  7. By: Sitati, Melap; Murebu, Rosemary; Ngugi, Rose; Onsomu, Eldah
    Abstract: The importance of teacher quality on early grade achievement of cognitive skills is the current policy discourse. Teacher quality is a key factor that influences learners achievement at all levels of schooling. This paper uses a multiple regression technique on Public Expenditure Tracking (PETs) and Service Delivery Indicators survey data (2014/2015) to interrogate the impact of teacher quality in terms of qualification in teacher training and experience on early grade achievement of cognitive skills in Kenya. Although the study reveals that teacher qualification in terms of training is the single-most important attribute that impacts on learner achievement, there is no significant difference between the teacher level of training on learner performance regardless of the time taken to acquire those qualifications. Interestingly, results showed that learners taught by certificate holders in teaching performed better than the ones taught by diploma holders. Pedagogical training, which is taught at certificate level, for teaching at primary education level is significant in affecting learner performance compared to diploma, yet the latter takes more duration and resources. The evidence also shows that teacher experience significantly affects learner performance especially in reading. However, further research could investigate how different type of school interventions amplify or weaken the effects of teachers on learners cognitive skill. The study recommends enhanced teacher professional development, more focus on in-service training on pedagogical skills acquired at the primary certificate level, equitable teacher distribution, and provision of adequate teaching and learning materials in school. It is also important to ensure that newly employed teachers have the required pedagogical skills and that they are provided with adequate pedagogical training programmes.
    Date: 2024–08–23
    URL: https://d.repec.org/n?u=RePEc:aer:wpaper:377dc487-d74d-45ca-a52d-008e01a1ae46

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