ON THE SOCIAL DIMENSION OF TIME AND RISK PREFERENCES: AN EXPERIMENTAL STUDY

When explaining risk taking, intertemporal allocation, and distributing behavior, economists rely on risk, time, and other-regarding preferences but offer no guidance on how these three crucial aspects are interrelated. We report on an experiment exploring such interrelation. For this sake, we compare evaluations of several prospects, each of which allocates certain or risky and immediate or delayed payoffs to the actor and to another participant. We find that individuals are self-oriented as to social allocation of risk and delay and other-regarding with respect to expected payoffs . ( JEL C91, D63, D81)     

AN EXPERIMENTAL STUDY ON THE RELEVANCE AND SCOPE OF NATIONALITY AS A COORDINATION DEVICE

In a period marked by extensive cross‐national interactions, nationality may present an important focal point that individuals coordinate on. This study uses an experimental approach to study whether nationality serves as a coordination device. We let subjects from Japan, Korea, and China play coordination games in which we vary information about their partner. The results show that nationality serves as a coordination device if common nationality is the only piece of information available to the subjects. The strength of this device is nationality‐dependent and diminishes when participants are provided with additional information about their partner. We also find that subjects are likely to coordinate on the Pareto‐dominant equilibrium at about the same rate if the partner has a different nationality than if nationality is unknown. (JEL C91, C92, Z1, Z13)     

HISTORY DEPENDENCE AND THE FORMATION OF SOCIAL PREFERENCES: AN EXPERIMENTAL STUDY

We study the minimal contributing set (MCS) game, a three‐person sequential step‐level public goods game. The behavior of critical third players changes with experience in this game even though they face no strategic or payoff uncertainty. We explore why these changes occur by manipulating subjects' experience in the first half of the experiment. The treatments give subjects very different initial experiences, but all treatments move subjects' choices toward experienced subjects' play in the control sessions. Long‐run play is indistinguishable across treatments. Our results are more consistent with the “discovered preferences” hypothesis ( Plott 1996 ) than either the “constructed preference” or “reference point” hypotheses. (JEL H41, C72, C92)     

AN EXPERIMENTAL STUDY OF KIN AND ETHNIC FAVORITISM

Ethnic and kinship ties have long been viewed as potential catalysts for favoritism, and hence corruption. In experiments conducted in three countries, we recruit siblings, coethnics and strangers and vary the relationship(s) between the players of a game to observe how kin and ethnic ties influence the willingness of two players to benefit one another at the expense of a third party. We see universal sibling favoritism, but ethnic favoritism, and favoritism toward other in-group members (friends) varies. We argue this may be driven in part by kinship institutions, since favoritism is more common in societies with denser kin networks. ( JEL D9, C9, D73, J12)     

DIFFERENTIATED ASSETS: AN EXPERIMENTAL STUDY ON BUBBLES

In this paper, we study if and how having two differentiated assets affects bubble formation. We consider differences in assets' intrinsic characteristics as well as trading regulations that help differentiate two otherwise identical assets. We find that, compared to trading regulations, differences in assets' intrinsic characteristics encourage more arbitrage across assets and thus help reduce mispricing significantly. We also find that short‐term speculation does not depend on how assets or markets are being differentiated. As a result, short‐term speculation cannot be used to explain why bubbles are smaller when two assets are intrinsically different than when they are not. (JEL C91, F34)     

COMMUNICATION AND INCENTIVE MECHANISMS BASED ON GROUP PERFORMANCE: AN EXPERIMENTAL STUDY OF NONPOINT POLLUTION CONTROL

This article considers whether communication can improve the efficacy of incentive mechanisms designed to correct the problem of moral hazard in groups. In particular, we use experimental economics methods to study environmental targeting instruments proposed by Segerson (1988) for regulating a group of nonpoint source polluters based on ambient concentrations. We find that communication greatly affects group performance, enhancing the efficiency of instruments involving fixed fines but leading to overcompliance, and hence inefficiency, in marginal tax/subsidy instruments. These results have implications for future theoretical development of group performance mechanisms as well as the design of public policies. (JEL H23 , C92 )     

ENVIRONMENTAL JUSTICE IN THE SOUTH: AN ANALYSIS OF THE DETERMINANTS AND CONSEQUENCES OF COMMUNITY INVOLVEMENT IN SUPERFUND

The intent of the present research is twofold. First, this study explores racial and class equity in the remediation of Superfund sites in the South (EPA Region IV) over three time periods related to reform in Superfund. Second, this research expands our conceptualization of procedural equity by assessing the impact of community involvement on site remediation and by exploring factors that predict community involvement. This research explores whether active communities realize greater rewards in terms of more desirable cleanup outcomes and a quicker pace of cleanup and examines who participates in remediation. Findings indicate that higher levels of community involvement can lengthen the remediation process as well as result in some less desirable forms of cleanup. Results also show that sites with a greater percentage of racial and ethnic minorities are less likely to participate in remediation, but the opposite is true for lower income communities. Implications of these findings and suggestions for future research are discussed.     

THE ESTIMATED EFFECT OF MATERNAL EMPLOYMENT ON CHILDREN UNDER MANDATORY AND NON-MANDATORY EMPLOYMENT CIRCUMSTANCES

Maternal employment's association with young school-age children's academic and behavioural outcomes was examined in a sample of families currently or recently receiving welfare. The sample comprised 1,197 African-American mothers and their preschool-age children who were randomly assigned either to the ‘human capital development’ (HCD) programme, the ‘labor force attachment’ (LFA) programme or to the control group in the Atlanta site of the Child Outcomes Study, a substudy of the National Evaluation of Welfare-to-Work Strategies (NEWWS). Once observed selection effects were controlled, maternal employment — regardless of whether obtained under mandatory or non-mandatory circumstances — was largely unrelated to contemporaneous measures of five to seven year olds’ academic school readiness and behaviour. There was one exception: maternal employment secured through Atlanta's HCD programme significantly predicted fewer and/or less frequent antisocial behaviours even after observed selection factors were controlled. Implications for policy and future research are discussed.     

THE EFFECT OF INSTITUTIONAL EXPENDITURES ON EMPLOYMENT OUTCOMES AND EARNINGS

In recent decades, public attention on colleges has risen in response to rising college expenditures and costs. This study uses the Education Longitudinal Study of 2002 to investigate how spending impacts salaries and employment outcomes, controlling for selection. Our findings indicate that spending on instruction increases salaries, the probability of full‐time employment, and job match, particularly for more disadvantaged students, while there are smaller benefits of spending on student services for less disadvantaged students. Spending on research has large positive impacts on salary and the probability of full‐time employment, especially for disadvantaged students. (JEL I20, J24)     

AN EXPERIMENTAL STUDY OF COMPLIANCE AND LEVERAGE IN AUDITING AND REGULATORY ENFORCEMENT

Evidence suggests that individuals often comply with regulations even though the frequency of inspections and audits is low. We report a laboratory experiment based on the dynamic model suggested by Harrington (1988) to explain this puzzle in which participants move between two inspection groups that differ in the probability of inspection and severity of fine. Enforcement leverage arises in the Harrington model from movement between the groups based on previous observed compliance and noncompliance. We find that compliance behavior does not change as sharply as the model predicts. A simple model of bounded rationality explains these deviations from optimal behavior. (JEL C91, Q20, Q28 )     

ROLE‐REVERSAL CONSISTENCY: AN EXPERIMENTAL STUDY OF THE GOLDEN RULE

We report an experiment that asks whether people in a strategic situation behave according to the Golden Rule, that is, do not treat others in ways that they find disagreeable to themselves, a property that we call role‐reversal consistency. Overall, we find that over three quarters of the subjects are role‐reversal consistent. Regression analysis suggests that this finding is not driven by players maximizing their subjective expected monetary earnings given their stated beliefs about their opponents' behavior. We find that subjects' stated beliefs and actions reveal mild projection bias. (JEL C78, C91)     

ON THE RELATIVE EFFICIENCY OF CASH TRANSFERS AND SUBSIDIES

This paper considers the relative efficiency of cash grants and subsidies when society's goal is to raise the welfare of a household. When the head of the household makes all consumption decisions, a principal-agent problem is created: the head acts as the agent of the government in allocating the transferred resources. Subsidies to commodities with particular characteristics may be a more efficient way to guarantee that benefits are shared within the household. Though related to the old notion of paternalism, this theory leads to more specific predictions regarding the kinds of commodities that can be efficiently subsidized.     

ON THE HETEROGENEOUS EMPLOYMENT EFFECTS OF OFFSHORING: IDENTIFYING PRODUCTIVITY AND DOWNSIZING CHANNELS

This article examines the channels through which offshoring affects employment in a representative sample of German establishments, using a difference‐in‐differences matching approach. Offshoring is measured by an increase in the share of foreign to total intermediate inputs at the plant‐level. We identify a positive productivity effect and isolate a negative downsizing effect from offshoring on employment, by exploiting differences between offshoring plants that do and do not simultaneously restructure. Furthermore, we cannot find evidence of negative indirect employment effects on domestic suppliers or competitors. (JEL F16, J23, F23, C21)     

AN INTERACTIVE MODEL OF INFORMAL ADULT CARE AND EMPLOYMENT

This study examines a multifactorial model of caregiving strain and accommodations, utilizing a sample of 1,146 employed caregivers. Based on a theoretically derived resource and demand model of caregiving outcomes, stepwise multiple regression equations were utilized to assess the contribution of selected caregiver background characteristics, family and work demands, and resources. Demanding aspects of caregiving and work responsibilities were found to contribute the most to caregiving strain and to work and family accommodations. Caregiver health status, job control and co-worker support also contributed significantly to the regression models. These findings underscore that demands at home and at work both contribute to work–family strain, suggesting that interventions are not apt to be effective in reducing the stress on employed caregivers unless they directly reduce the growing time pressures and energy demands experienced by today's workers and family members.

Cette étude analyse le degré de surmenage des auxiliaires de vie en utilisant un échantillon de 1.146 professionnels en activité. Basé sur un modèle conceptuel d'offre et de demande pour ce type de service, une série d’équations régressives par étape a été utilisée afin d’évaluer la prestation de l’échantillon analysé sur la base de ses caractéristiques sociaux démographiques, des charges familiales et professionnelles et des conditions de ressources. L’étude a prouvé que les caractéristiques contraignantes de ce type de profession ainsi que les responsabilités qui s'y rattachent contribuaient les plus au surmenage des auxiliaires de vie; cela ainsi que les aménagements nécessaires entre vie de famille et astreintes professionnelles. L’état de santé, le degré d'autonomie ainsi que le soutien potentiel des collègues de l'auxiliaire de vie ont également une incidence significative sur le modèle régressif. Ces conclusions soulignent que les contraintes domestiques associées à celles du travail contribuent conjointement au surmenage tant dans le cadre familial que professionnel, suggérant que des interventions ne sont pas en mesure de réduire ce surmenage chez les auxiliaire de vie en activité, excepté si elles agissent directement en diminuant le stress lié aux contraintes de temps croissantes et aux exigences en énergie rencontrés par les auxiliaires de vie et leurs familles de nos jours.     

MULTIPLE REALITIES AND THE EXPERIENCE OF DURATION

This article documents an exploration of the following question: How does transition from one to another subuniverse of social reality shape the individual's sense of duration? That question is addressed through a phenomenological analysis of time-consciousness. The data consist of personal testimony in the form of anecdotes that summarize incidents in which time was felt to slow noticeably. Analytic induction is applied to these ethnographic observations. These data suggest that the shock that accompanies relatively distinct shifts from one finite province of meaning to another provokes increased perception of immediate detail as the individual strives to interpret emerging events.     

THE CONSEQUENCES OF CARING:

Sociologists of emotion have examined the ways that workers are required to manage their emotions on the job, while studies of family emotion work reveal the effort involved in providing emotional support at home. Analyzing data collected from married or cohabiting women hospital workers, we examine the relations between women's job and family emotion work and the effects of both on women's job-related well-being. Consistent with "scarcity" views of women's emotional energy, we find that performance of family emotion work has negative consequences for women's job-related well-being. Consistent with "expansion" perspectives, however, women who perform some emotional labor on the job are more likely than other women to perform family emotion work. Our findings support a view that incorporates elements of both scarcity and expansion perspectives. We conclude that the job-related well-being of women hospital workers is less influenced by performance of emotional labor at work than it is by women's and their partners' involvement in family emotion work.     

ECONOMIC SEARCH: AN EXPERIMENTAL STUDY

This paper presents results of experiments designed to test several of the hypotheses present in the theoretical literature on "optimal" economic search. First we test whether the subjects (searchers) actually search for wages in ways that are consistent with setting an optimal reservation wage. We then proceed to determine experimentally the effects of risk aversion, increased search costs, changes in risk (brought about by a mean-preserving transformation of the distribution of wage offers), the presence or absence of recall, the existence of a finite horizon, and the searcher's state of knowledge about the underlying distribution of wages. In general, we find that the searchers exhibit behavior that is consistent with that predicted by theory. Differences between risk neutral and risk averse searchers are found, and the responses of both groups to changes in search costs, in the degree of risk, or in the state of knowledge are consistent with theoretical predictions.