15 Jul 05:40
We exploit the occurrence of postpartum depression (PPD), which has a random component according to the medical community, to estimate causal effects of a salient form of mental illness on couples' relationship status. We estimate single-equation models as well as bivariate probit models that address the endogeneity of PPD. We find that this relatively prevalent mental illness reduces the probability the couples are married (by 22-24%) as well the probability that they are living together (married or cohabiting) (by 24-26%) three years after the birth of the child. Models stratified by relationship status at the time of the birth indicate that PPD makes it more likely that unions dissolve (particularly among baseline cohabitors) and less likely that unions are formed (particularly among baseline non-cohabitors). The findings contribute to the literature on the effects of mental illness on relationships and to the broader literature on socioeconomic status and health.
15 Jul 05:29
In this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be well-informed, uninformed, or poorly informed about market prices. We find that repair shops quote higher prices to callers who cite a higher expected price. We find that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention an expected price for the repair. Finally, we find that repair shops are more likely to offer a price concession if asked to do so by a woman than a man.
15 Jul 05:12
by Kawaguchi, Daiji, Murao, Tetsushi, Kambayashi, Ryo
This paper examines the effects of upgrading product quality standards on product and professional labor-market equilibriums when both markets are regulated. The Japanese government revised the Building Standards Act in June 2007, requiring a stricter review process for admitting the plans of large-scale buildings. This regulatory change increased the wage of certified architects in Tokyo by 30% but did not increase their total hours worked because of an inelastic labor supply. The stricter quality standards created a quasi-rent for certified architects and owners of condominiums at a cost to consumers. Evidence suggests that the stricter quality standards increased the transaction price of used condominiums by 15% in the Tokyo metropolitan area.
15 Jul 05:08
by Chunzhou Mu, Shiko Maruyama
Recent years have witnessed a growing proportion of female general practitioners (GPs) worldwide. Because female GPs tend to work fewer hours than male GPs, this continuing trend may accelerate the shortage of GPs. This paper investigates the gender difference in the wage elasticity of Australian GPs by maximum likelihood estimation of labour supply and wage equations. Quantitative information regarding the labour supply responses of GPs is vital in designing eective policies. The results show salient gender difference. An increase in hourly wage increases the labour supply of male GPs and reduces the labour supply of female GPs, resulting in an enlarged gender dierence in labour supply. The results also suggest that family factors still remain a key driving force of the reduced labour supply of Australian female GPs.
15 Jul 04:07
by Loureiro, Maria L., Rahmani, Djamal
We conducted a survey and a randomized natural experiment with the same subjects to investigate the effect of information about calorie intake on fast food choices. This combined approach allows us to maximize both internal and external research validity and test consistency of findings. We find that providing information about calories in a survey context for fast food menus has a moderate effect on calorie consumption, decreasing on average by 2.96 percent the amount of calories of the selected food choices. However, the same nutritional information had no significant impact on actual purchases in the restaurant context. Among the possible menus, the salad menu (the healthiest menu) was the most preferred option by those respondents who received nutritional information in the survey context; whereas in the restaurant, the most popular choice for the same group of people was the “Double bacon burger option” (the least healthy option). Finally, we find that the average calorie content of participants’ actual purchases increases significantly (0.17%) with the number of days elapsed between the day when the survey took place (and information was provided) and the actual purchase day at the restaurant. These results show large discrepancies between stated preferences and actual market behavior. These findings may be justified by the existence of projection bias and subjects acting under rational ignorance.
15 Jul 03:56
by Andrew E. Clark, Conchita D’Ambrosio, Simone Ghislandi
We consider the link between poverty and subjective well-being, and focus in particular on the role of time. We use panel data on 42,500 individuals living in Germany from 1992 to 2010 to uncover four empirical relationships. First, life satisfaction falls with both the incidence and intensity of contemporaneous poverty. There is no evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective
well-being. Third, poverty scars: those who have been poor in the past report lower life satisfaction today, even when out of poverty. Last, the order of poverty spells matters: for a given number of poverty spells, satisfaction is lower when the spells are concatenated: poverty persistence reduces well-being. These effects differ by population subgroups.
15 Jul 03:53
by Rudd, Melanie, Aaker, Jennifer, Norton, Michael I.
Across six field and laboratory experiments, participants given a concretely-framed prosocial goal (e.g., making someone smile, increasing recycling) felt happier after performing a goal-directed act of kindness than did those who were assigned a functionally similar, but more abstractly-framed, prosocial goal (e.g., making someone happy, saving the environment). This effect was driven by differences in the size of the gap between participants' expectations and reality: Compared to those assigned to pursue an abstractly-framed prosocial goal, those assigned to pursue a concretely-framed goal perceived that the actual outcome of their goal-directed efforts more accurately matched their expectations, causing them to experience a greater boost in personal happiness. Further, participants were unable to predict this effect, believing that pursuing abstractly-framed prosocial goals would have either an equal or greater positive impact on their own happiness.
15 Jul 03:43
by Francesca Acacia, Maria Cubel
In this paper we extend the research on happiness and spatial theory of voting by exploring whether strategic and sincere voting affect subjective well-being. We conduct the analysis with data on a large sample of individuals over 50 elections in 16 OECD countries. The results of the analysis show the existence of a negative effect of strategic voting on subjective well-being. In addition, the likelihood of being satisfied decreases when individuals vote strategically for a political party that wins the electoral race. Furthermore, when we analyse separately left-wing and right-wing voters, we find that the described effect holds for left-wing voters but no for right-wing voters. We discuss this evidence in the light of expressive voting theory (Hilman, 2010) and lack of empathy with future selves (Kahneman and Thaler, 1991). Our results are robust to different measures of strategic voting and subjective well-being.
15 Jul 03:43
by Haile, Getinet Astatike
This paper attempts to establish empirically whether natives' job satisfaction is adversely affected by having minority co-worker(s). The paper uses nationally representative linked employer-employee data and eight different facets of job satisfaction. Measuring minority co-worker status at the workplace- and occupation-level and employing alternative econometric estimators; the paper finds that on average natives' experience a reduction in job satisfaction due to having minority co-worker(s). The effect found is larger if the co-worker-ship is at the occupation-level.
15 Jul 03:04
by Tiwari, Ashutosh, Richards, Timothy J.
We compare the effect of anonymous social network ratings (Yelp.com) and peer group recommendations on restaurant demand. We conduct a two stage choice experiment and combine it with online social network reviews from Yelp.com and find that peers have a stronger impact on restaurant demand than anonymous reviewers.