The Gender Reveal: The Effect of Sons on Young Fathers’ Criminal Behavior and Labor Market Activities
Based on New Zealand’s administrative court charges data, we document child gender-specific differences in future criminal behavior of young fathers. The deterrent impact of having a son on the future likelihood of receiving convictions persists for as long as ten years post-childbirth. Utilizing population-wide monthly tax registers and Census data, we provide key insights into the role model hypothesis. We show that young fathers with a son have (i) a higher likelihood of being in employment, (ii) higher wages and salaries, (iii) lower benefit dependency, (iv) better qualification, and (v) a higher likelihood of being in a partnered relationship.
The maths behind gut decisions First carefully weigh up the costs and benefits and then make a rational...
The Macroeconomics of Epidemics
Review of Financial Studies,
We extend the canonical epidemiology model to study the interaction between economic decisions and epidemics. Our model implies that people cut back on consumption and work to reduce the chances of being infected. These decisions reduce the severity of the epidemic but exacerbate the size of the associated recession. The competitive equilibrium is not socially optimal because infected people do not fully internalize the effect of their economic decisions on the spread of the virus. In our benchmark model, the best simple containment policy increases the severity of the recession but saves roughly half a million lives in the United States.
Financial Systems: The Anatomy of the Market Economy How the financial system is...
IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct...
Four Research Clusters ...
24.06.2021 • 17/2021
Loneliness during the pandemic – social isolation increases the likelihood of selfish behaviour
Social distancing as a counter-measure to the COVID-19 pandemic has far-reaching social consequences which have so far hardly been discussed from an economic perspective. This is demonstrated in a study by the Halle Institute for Economic Research (IWH). “Experiencing social isolation resulted in the participants in our study making more selfish decisions,” says the author of the study, Sabrina Jeworrek, Assistant Professor at Otto von Guericke University Magdeburg and head of research group in the Department of Structural Change and Productivity at IWH.
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Alone at Home: The Impact of Social Distancing on Norm-consistent Behavior
IWH Discussion Papers,
Around the globe, the COVID-19 pandemic has turned daily live upside down since social distancing is probably the most effective means of containing the virus until herd immunity is reached. Social norms have been shown to be an important determinant of social distancing behaviors. By conducting two experiments and using the priming method to manipulate social isolation recollections, we study whether social distancing has in turn affected norms of prosociality and norm compliance. The normative expectations of what behaviors others would approve or disapprove in our experimental setting did not change. Looking at actual behavior, however, we find that persistent social distancing indeed caused a decline in prosociality – even after the relaxation of social distancing rules and in times of optimism. At the same time, our results contain some good news since subjects seem still to care for norms and become more prosocial once again after we draw their attention to the empirical norm of how others have previously behaved in a similar situation.
Unethical Employee Behavior Against Coworkers Following Unkind Management Treatment: An Experimental Analysis
Managerial and Decision Economics,
We study unethical behavior toward unrelated coworkers as a response to managerial unkindness with two experiments. In our lab experiment, we do not find that subjects who experienced unkindness are more likely to cheat in a subsequent competition against another coworker who simultaneously experienced mistreatment. A subsequent survey experiment suggests that behavior in the lab can be explained by individuals' preferences for norm adherence, because unkind management behavior does not alter the perceived moral appropriateness of cheating. However, having no shared experience of managerial unkindness opens up some moral wiggle room for employees to misbehave at the costs of others.