Gender bias in job referrals: An experimental test

Employee referral programs, while efficient for the employer, have been shown to amplify sex-based occupational segregation in labor markets because of the tendency of workers to refer people of the same gender. We implement a controlled laboratory experiment that precludes any concern for network composition or reputation effects in referral choice. In this way, our experimental design allows us to disentangle statistical discrimination, preferences, and implicit same-gender bias. Our data suggest that women tend to favor women when choosing a candidate, whereas men do not attach much importance to the gender of potential candidates. We deduce from our various treatments that same-gender referrals are mainly driven by preferences in competitive environments and implicit same-gender bias in cooperative environments. Our findings add to the existing literature by highlighting that gendered networks alone fail to explain the observed gender homophily in referred-referrer pairs.     

What affects customer success when bargaining for a new car? Some empirical evidence

Data about 233 new car models were collected, and a measure of customer success in bargaining for a new car (alpha) was created by computing the ratio between the discount received on the manufacturer's suggested retail price (MSRP) and the negotiable range (MSRP − dealer's car cost). One hypothesis was that customers who purchase more expensive cars succeed less in bargaining because of their higher time value. A second hypothesis was that a positive correlation between the negotiable range and alpha should exist, because of either customer incentives to bargain or dealer's bargaining strategy. Both hypotheses were supported by the data.     

Determinants of regional differences in rates of overeducation in Europe

This paper examines the factors determining variations in spatial rates of overeducation. A quantile regression model has been implemented on a sample of region-yearly data drawn from the EU Survey on Income and Living Conditions (EU-SILC) and several institutional and macroeconomic features captured from other data-sets. Potential determinants of overeducation rates include factors such as labour market risk, financial aid to university students, excess labour demand and institutional factors. We find significant effects both for labour market structural imbalances and institutional factors. The research supports the findings of micro based studies which have found that overeducation is consistent with an assignment interpretation of the labour market.     

Small sample performance of large sample tests for tobit versus p -tobit

Large sample tests for the standard To bit model versus the ^p -Tobit model by Deaton and Irish (1984) are studied. The normalized one-tailed score test by Deaton and Irish (1984) is shown to be a version of Neyman's C(α) test that is valid for the non-standard problem of the null hypothesis lying on the boundary of the parameter space. Then, this paper reports the results of Monte Carlo experiments designed to study the small sample performance of large sample tests for the standard Tobit specification versus the ^p -Tobit specification.     

Helping consumers with a front-of-pack label: Numbers or colors?: Experimental comparison between Guideline Daily Amount and Traffic Light in a diet-building exercise

This paper contributes to the debate on front-of-pack nutritional labels. Because of their dissimilar formats, Guideline Daily Amount (GDA) and Traffic Light (TL) may trigger different responses among consumers. While GDA is comprehensive and cognitively demanding, information is coarser and more salient in TL. We implement an incentivized laboratory experiment to assess the relative performance of GDA and TL labeling schemes in assisting consumers to build a healthy daily menu. Participants must compose a daily menu, choosing from a finite set of products, and are paid a fixed cash amount only if the menu satisfies pre-determined nutritional goals. Goals correspond to achieving the Guideline Daily Amount values of 1 (kcal), 4 (kcal, fat, sugar, salt) or 7 (kcal, fat, sugar, salt, fiber, vitamin C and calcium) different nutritional attributes. Three different labels, GDA, TL and a combined GDATL are provided. Results show that GDA performs better than TL when subjects do not face time constraints. When time is limited however, TL and GDA have identical efficacy with 4 nutritional goals, and TL even outperforms GDA with 7 nutritional goals.     

Exact methods of testing the homogeneity of prevalences for correlated binary data

Correlated binary data arise in many ophthalmological and otolaryngological clinical trials. To test the homogeneity of prevalences among different groups is an important issue when conducting these trials. The equal correlation coefficients model proposed by Donner in 1989 is a popular model handling correlated binary data. The asymptotic chi-square test works well when the sample size is large. However, it would fail to maintain the type I error rate when the sample size is relatively small. In this paper, we propose several exact methods to deal with small sample scenarios. Their performances are compared with respect to type I error rate and power. The ‘M approach’ and the ‘E + M approach’ seem to outperform the others. A real work example is given to further explain how these approaches work. Finally, the computational efficiency of the exact methods is discussed as a pressing issue of future work.     

Revisiting the residential electricity demand in the United States: A dynamic partial adjustment modelling approach

In recent years, price policies and price changes derived from environmental regulations have played a more important role to promote residential energy conservation. Using recent annual state-level panel data for 48 states, we estimate a dynamic partial adjustment model for electricity demand elasticities on price and income in the residential sector. Our analysis reveals that in the short run, one unit price increase will lead to 0.142 unit of reduction in electricity use after controlling for the endogeneity of electricity price. Thus, raising energy price in the short run will not give consumers much incentive to adjust their appliances to reduce electricity use. However, in the long run, one unit price increase will lead to almost one unit consumption reduction, ceteris paribus. In addition, we find new evidence that for states of higher per capita GDP, raising the electricity price may be more effective to ensure a cut in consumption.     

Trends in and determinants of technical efficiency of software companies in India

This paper attempts to discuss the trends in and determinants of technical efficiency of software companies in India during 1999–2008 by applying input-oriented DEA model. Based upon the PROWESS Database of CMIE, the efficiencies were estimated for the old and new companies and also for Indian, multinational and group companies. The estimations were made for a sample of 72 software companies, under VRS assumption, as dataset manifested large magnitude of differences owing to the presence of big and small companies in the sample. The sales revenue is taken as output variable, and employment, expenditure on computers and electronics equipments, operating expenditure, power, fuel, and water charges as the input variables. The results and analyses demonstrate that the mean overall technical efficiency of the software industry in India during 1999–2008 was low suggesting that software firms, on an average, were wasting 35% of their inputs. It was found that the number of companies operating on most productive scale size has declined during the period under reference. The results also suggest that Indian-owned companies were more efficient than the foreign-owned and group-owned companies. Contrary to the expectations, exports were not found to have exercised significant impact on the efficiency of Indian software industry.     

Carry a big stick,or no stick at all: Punishment and endowment heterogeneity in the trust game

We investigate the effect of costly punishment in a trust game with endowment heterogeneity. Our findings indicate that the difference between the investor and the allocator’s initial endowments determines the effect of punishment on trust and trustworthiness. Punishment fosters trust only when the investor is wealthier than the allocator. Otherwise, punishment fails to promote trusting behavior. As for trustworthiness, the effect is just the opposite. The higher the difference between the investor and the allocator’s initial endowments, the less willing allocators are to pay back. We discuss the consistency of our findings with social preference models (like inequality aversion, reciprocity), the capacity of punishment (i.e., the deterrence hypothesis) and hidden costs of punishment (i.e., models of intrinsic and extrinsic motivation). Our results are hardly coherent with the first two (inequality aversion and deterrence), but roughly consistent with the latter.     

Being of two minds: Ultimatum offers under cognitive constraints

We experimentally investigate how proposers in the Ultimatum Game behave when their cognitive resources are constrained by time pressure and cognitive load. In a dual-system perspective, when proposers are cognitively constrained and thus their deliberative capacity is reduced, their offers are more likely to be influenced by spontaneous affective reactions. We find that under time pressure proposers make higher offers. This increase appears not to be explained by more reliance on an equality heuristic. Analysing the behaviour of the same individual in both roles leads us to favour the strategic over the other-regarding explanation for the observed increase in offers. In contrast, proposers who are under cognitive load do not behave differently from proposers who are not.