Self-selection and peer-effects in experimental labor markets

2013 ◽  
Author(s):  
Tushi Baul
2021 ◽  
Author(s):  
Laeticia R. de Souza ◽  
Cristine Campos de Xavier Pinto ◽  
Bernardo L Queiroz ◽  
Dimitri de Oliveira e Silva

This paper investigates the existence of peer effects in academic outcomes by exploringspecificities in the student's admission process of a Brazilian federal university, which works as a naturalexperiment. Individuals who are comparable in terms of previous academic achievement end up havingclassmates with better or worse performance in college because of the assignment rule of students toclassrooms. Thus, our identification strategy for estimating peer effects on academic outcomes eliminates theendogenous self-selection into groups that would otherwise undermine the causal inference of peer effects.Overall, our findings showed that joining a class with high-ability students damages academic achievementsof the lowest-ability students at UFMG. Although male and female students are both negatively affected bybeing in the first (better) class, we found gender differences. Specifically, being at the bottom of the betterclass make females take less radical decisions compared to male students in the sense that female studentscontinue to study even though with lower performance (reduced GPA and credits earned) while male studentsseem to be more prone towards dropping out (increased number of subjects – or even University registration– cancelled and reduced attendance in classroom). We have also found other heterogeneities in peer effectsin college in terms of class shift, period of admission, area of study and parents’ education. This study is anecessary step before investigating the impact of peer quality on after-graduating decisions using the samenatural experiment. This will allow us to deepen our understanding of how peer effects can also have long-lasting impacts.


2021 ◽  
Vol 5 ◽  
Author(s):  
Bernd Frick ◽  
Katharina Moser

Do women shy away from competition while men compete too much? The available, mostly experimental evidence generally supports these assumptions. However, in contrast to laboratory settings, labor markets do not have random assignment of workers. Instead, individuals—professional athletes and corporate executives—self-select into specific occupations. Using data from Alpine and Nordic skiing over 52 and 37 years respectively, we show that career length of men and women is virtually identical. Thus, when adequately controlling for self-selection into a highly competitive environment, differences between men and women with respect to competitiveness completely disappear.


2021 ◽  
Author(s):  
Lukas Kiessling ◽  
Jonas Radbruch ◽  
Sebastian Schaube

This paper studies how the presence of peers and different peer assignment rules—self-selection versus random assignment—affect individual performance. Using a framed field experiment, we find that the presence of a randomly assigned peer improves performance by 28% of a standard deviation (SD), whereas self-selecting peers induces an additional 15%–18% SD improvement in performance. Our results document peer effects in multiple characteristics and show that self-selection changes these characteristics. However, a decomposition reveals that variations in the peer composition contribute only little to the performance differences across peer assignment rules. Rather, we find that self-selection has a direct effect on performance. This paper was accepted by Yan Chen, decision analysis.


2019 ◽  
pp. 1-21
Author(s):  
BHASKAR JYOTI NEOG ◽  
BIMAL KISHORE SAHOO

The study examines the extent of gender and caste-based discrimination among the formally and informally employed in India using the National Sample Survey Office (NSSO) Employment-Unemployment Survey (EUS) data for the four major rounds from 1999–00 to 2011–12. Oaxaca-Blinder decomposition results corrected for self-selection show wage discrimination to be significantly higher in informal employment compared to the formally employed. Similarly, caste-based discrimination is found to be lower compared to gender-based discrimination. The quantile decomposition results show discrimination to vary across the quantiles. Our results highlight the need for better regulation of the informal labor market in India.


2014 ◽  
Vol 104 (5) ◽  
pp. 250-254 ◽  
Author(s):  
Susan Pozo

A typical strategy for measuring the returns to international experience--comparing the earnings of returning migrants to comparable non-migrants--has been criticized for not adequately accounting for self-selection. I suggest an alternative, testing whether individuals born beyond US borders, but into US citizenship, earn more in US labor markets relative to counterparts born on US soil. Those born abroad to US citizens did not self-select an international experience. Using the ACS, I find that the US market rewards international experience, especially in occupations that value creativity and innovation. Women, in particular, are handsomely rewarded for international human capital.


2009 ◽  
Vol 1 (4) ◽  
pp. 34-68 ◽  
Author(s):  
Jonathan Guryan ◽  
Kory Kroft ◽  
Matthew J Notowidigdo

This paper uses random assignment in professional golf tournaments to test for peer effects in the workplace. We find no evidence that playing partners' ability affects performance, contrary to recent evidence on peer effects in the workplace from laboratory experiments, grocery scanners, and soft fruit pickers. In our preferred specification, we can rule out peer effects larger than 0.043 strokes for a one stroke increase in playing partners' ability. Our results complement existing studies on workplace peer effects and are useful in explaining how social effects vary across labor markets, across individuals, and with the form of incentives faced. (JEL D83, J44, L83)


2001 ◽  
Vol 61 (4) ◽  
pp. 877-903 ◽  
Author(s):  
Curtis J. Simon

This article presents somewhat-more-direct evidence than has been available on the supply price of labor during the Depression. The new data comprise wages asked from situations-wanted ads for female clerical workers. Between 1929 and 1933 annual average clerical wages asked fell nominally by nearly 58 percent, markedly lower than wages of new or existing employees. Neither changes in labor quality nor self-selection explains the decline. Clerical wages asked fell by roughly the same percentage as did wages paid in agriculture. The data are strongly inconsistent with the market-clearing view of Depression-era labor markets.


Ekonomia ◽  
2019 ◽  
Vol 25 (3) ◽  
pp. 29-41
Author(s):  
Alicja Sielska

Neoclassical theories of discrimination under conditions of perfect competition — critical analysisThe goal of this article is to analyze the neoclassical theories of discrimination in perfectly competitive labor markets. Based on the conducted considerations, the taste discrimination model, as well as the theory of human capital, demonstrated the lack of validity of these theories over a long period of time. In the short term, however, self-selection contracts or masking curtains seem to be a good solution. Despite this, the period of motherhood, which can be considered one of the most important discrimination factors, remains an unsolved problem.


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