Table of Contents

Baby Boom Migration and Its Impact on Rural America

John Cromartie, U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Breakup of New Orleans Households After Hurricane Katrina

Michael S. Rendall, RAND Corporation

Do Non-Economic Quality of Life Factors Drive Immigration?

Joshua J. Lewer, Bradley University
Gail Pacheco, Auckland University of Technology - School of Business and Economics
Stephanié Rossouw, affiliation not provided to SSRN

How Effective are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit

Patrick P. Arni, University of Lausanne - Department of Economics (DEEP)
Rafael Lalive, University of Lausanne - Department of Economics (DEEP), Institute for the Study of Labor (IZA), CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Jan C. van Ours, Tilburg University - Department of Economics, Institute for the Study of Labor (IZA), Centre for Economic Policy Research (CEPR)

Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending

Andrea Bellucci, University of Urbino - Faculty of Economics
Alexander Borisov, Indiana University Bloomington - Department of Finance
Alberto Zazzaro, Università Politecnica delle Marche - Faculty of Economics

Gender and Generosity: Does Degree of Anonymity or Group Gender Composition Matter?

Charles Bram Cadsby, University of Guelph
Maros Servatka, University of Canterbury - Department of Economics
Fei Song, Ted Rogers School of Management, Ryerson University

How Mindless is Standard Economics Really?

Burkhard C. Schipper, University of California, Davis - Department of Economics

Now Daddy’s Changing Diapers and Mommy’s Making Her Career - Evaluating a Generous Parental Leave Regulation Using a Natural Experiment

Jochen Kluve, RWI Essen: Rheinisch-Westfaelisches Institut fuer Wirtschaftsforschung, Institute for the Study of Labor (IZA)
Marcus Tamm, RWI Essen


BEHAVIORAL & EXPERIMENTAL ECONOMICS ABSTRACTS

"Baby Boom Migration and Its Impact on Rural America" Free Download
USDA - ERS Economic Research Report No. 79

JOHN CROMARTIE, U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)
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Members of the baby boom cohort, now 45-63 years old, are approaching a period in their lives when moves to rural and small-town destinations increase. An analysis of age-specific, net migration during the 1990s reveals extensive shifts in migration patterns as Americans move through different life-cycle stages. Assuming similar age patterns of migration, this report identifies the types of nonmetropolitan counties that are likely to experience the greatest surge in baby boom migration during 2000-20 and projects the likely impact on the size and distribution of retirement-age populations in destination counties. The analysis finds a significant increase in the propensity to migrate to nonmetro counties as people reach their fifties and sixties and projects a shift in migration among boomers toward more isolated settings, especially those with high natural and urban amenities and lower housing costs. If baby boomers follow past migration patterns, the nonmetro population age 55-75 will increase by 30 percent between now and 2020.

"Breakup of New Orleans Households After Hurricane Katrina" 
RAND Working Paper Series WR- 703

MICHAEL S. RENDALL, RAND Corporation
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The resilience of family and household structure to displacement-inducing natural disaster is investigated. Households from a survey that traces the outcomes of a population-representative sample of households in New Orleans before Hurricane Katrina are compared statistically to households from a national sample. Household breakup following Katrina was extremely high among extended-family households, exacerbated by the high prevalence of extended-family households in New Orleans before the hurricane. While the highest rates of household breakup occurred among households whose residences were made uninhabitable by the Hurricane and its aftermath, city-wide impacts on household breakup were found.

"Do Non-Economic Quality of Life Factors Drive Immigration?" Free Download
IZA Discussion Paper No. 4385

JOSHUA J. LEWER, Bradley University
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GAIL PACHECO, Auckland University of Technology - School of Business and Economics
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STEPHANIÉ ROSSOUW, affiliation not provided to SSRN
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This paper contributes to the immigration literature by generating two unique non-economic quality of life (QOL) indices and testing their role on recent migration patterns. Applying the generated quality of life indices in conjunction with other independent welfare measures to an extended gravity model of immigration for 16 OECD destination countries from 1991 to 2000 suggests an insignificant role for QOL in the immigration process. The panel results suggest that other economic variables such as the stock of immigrants from the source country already living in the OECD destination country, population size, relative incomes, and geographic factors all significantly drive the flow of immigration for the sample.

"How Effective are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit" Free Download
CentER Discussion Paper Series No. 2009-80

PATRICK P. ARNI, University of Lausanne - Department of Economics (DEEP)
Email:
RAFAEL LALIVE, University of Lausanne - Department of Economics (DEEP), Institute for the Study of Labor (IZA), CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Email:
JAN C. VAN OURS, Tilburg University - Department of Economics, Institute for the Study of Labor (IZA), Centre for Economic Policy Research (CEPR)
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This paper provides a comprehensive evaluation of benefit sanctions, i.e. temporary reductions in unemployment benefits as punishment for noncompliance with eligibility requirements. In addition to the effects on unemployment durations, we evaluate the effects on post-unemployment employment stability, on exits from the labor market and on earnings. In our analysis we use a rich set of Swiss register data which allow us to distinguish between ex ante effects, the effects of warnings and the effects of enforcement of benefit sanctions. Adopting a multivariate mixed proportional hazard approach to address selectivity, we find that both warnings and enforcement increase the job finding rate and the exit rate out of the labor force. Warnings do not affect subsequent employment stability but do reduce post-unemployment earnings. Actual benefit reductions lower the quality of post-unemployment jobs both in terms of job duration as well as in terms of earnings. The net effect of a benefit sanction on post-unemployment income is negative. Over a period of two years after leaving unemployment workers who got a benefit sanction imposed face a net income loss equivalent to 30 days of full pay due to the ex post effect. In addition to that, stricter monitoring may reduce net earnings by up to 4 days of pay for every unemployed worker due to the ex ante effect.

"Does Gender Matter in Bank-Firm Relationships? Evidence from Small Business Lending" Free Download

ANDREA BELLUCCI, University of Urbino - Faculty of Economics
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ALEXANDER BORISOV, Indiana University Bloomington - Department of Finance
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ALBERTO ZAZZARO, Università Politecnica delle Marche - Faculty of Economics
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In this paper we study the relevance of the gender of the contracting parties involved in lending. We show that female entrepreneurs face tighter access to credit, even though they do not pay higher interest rates. The effect is independent of the information available about the borrower and holds if we control for unobservable individual effects. The gender of the loan officer is also important: we find that female officers are more risk-averse or less self-confident than male officers as they tend to restrict credit availability to new, unestablished borrowers more than their male counterparts.

"Gender and Generosity: Does Degree of Anonymity or Group Gender Composition Matter?" Free Download

CHARLES BRAM CADSBY, University of Guelph
Email:
MAROS SERVATKA, University of Canterbury - Department of Economics
Email:
FEI SONG, Ted Rogers School of Management, Ryerson University
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Employing a two-by-two factorial design that manipulates whether dictator groups are single or mixed-sex and whether procedures are single or double-blind, we examine gender effects in a standard dictator game. No gender effect was found in any of the experimental treatments. Moreover, neither single - versus mixed - sex groups nor level of anonymity had any impact on either male or female behavior.

"How Mindless is Standard Economics Really?" Free Download

BURKHARD C. SCHIPPER, University of California, Davis - Department of Economics
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Contrary to claims by Gul and Pesendorfer (2008), I show that standard economics makes use of non-choice evidence in a meaningful way. This is because standard economics solely grounded in the theory of choice is "incomplete''. That is, it has content that can not be revealed with any general choice procedure.

"Now Daddy’s Changing Diapers and Mommy’s Making Her Career - Evaluating a Generous Parental Leave Regulation Using a Natural Experiment" Free Download

JOCHEN KLUVE, RWI Essen: Rheinisch-Westfaelisches Institut fuer Wirtschaftsforschung, Institute for the Study of Labor (IZA)
Email:
MARCUS TAMM, RWI Essen
Email:

Over the last decades many OECD countries introduced parental leave regulations in order to counteract low and decreasing birth rates. In general, these regulations aim at making parenthood more attractive and more compatible with a working career, especially for women. The recent German Elterngeld reform is one example: By replacing 67 per cent of prepartum parental labor earnings for up to 14 months after birth of the child - if both father and mother take up the transfer - it intends to i) smooth or prevent households’ earnings decline postpartum, ii) make childbearing attractive for working women while iii) keeping them close to the labor market, and iv) incentivize fathers to participate in childcare. We evaluate the reform by using a natural experiment created by the quick legislative process of the Elterngeld reform: Comparing outcomes of parents with children born shortly after and before the coming into effect of the law on 1 January 2007 yields unbiased estimates of the reform effects, because at the time when these children were conceived none of the parents knew that the regulation would be in force by the time their child is born. Our results are based on unique data from the official evaluation of the reform, which we conducted for the German government, and they show that the reform has been generally successful in attaining its objectives. In particular, we find a significant decrease in mothers’ employment probability during the 12 months after giving birth, and a significant increase in mothers’ employment probability after the Elterngeld transfer expires.

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Harvard Business School, Social Science Electronic Publishing (SSEP), Inc.
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Advisory Board

Behavioral & Experimental Economics

MORRIS ALTMAN
Professor and Head, Victoria University of Wellington - School of Economics & Finance

GERRIT ANTONIDES
Professor, Wageningen University and Research Center - Economics of Consumers and Households

OFER H. AZAR
Senior Lecturer, Ben-Gurion University of the Negev - School of Management

COLIN CAMERER
Rea A. & Lela G. Axline Professor of Business Economics, California Institute of Technology - Division of the Humanities and Social Sciences

WERNER F.M. DEBONDT
Richard H. Driehaus Professor of Finance, DePaul University - Driehaus Center for Behavioral Finance

CATHERINE C. ECKEL
Professor, University of Texas at Dallas - Economics, Associate Professor of Economics, Virginia Polytechnic Institute & State University - Department of Economics

RICHARD G. FRANK
Margaret T. Morris Professor of Health Economics, Harvard Medical School, National Bureau of Economic Research (NBER)

URI GNEEZY
Assistant Professor of Behavioral Science, University of Chicago - Booth School of Business

CLAIRE A. HILL
Professor, University of Minnesota, Twin Cities - School of Law

CATHLEEN A. JOHNSON
University of Arizona - Department of Economics, Director, Experimental Economics Group, Center for Interuniversity Research and Analysis on Organization (CIRANO)

DANIEL KAHNEMAN
Eugene Higgins Professor of Psychology and Professor of Public Affairs, Princeton University

BIJOU YANG LESTER
Professor of Economics, Drexel University - Department of Economics & International Business

JOHN A. LIST
Professor, University of Chicago - Department of Economics, National Bureau of Economic Research (NBER), Institute for the Study of Labor (IZA)

GEORGE LOEWENSTEIN
Professor of Economics and Psychology, Carnegie Mellon University - Department of Social and Decision Sciences

ROBERT J. OXOBY
Associate Professor, University of Calgary - Economics, Institute for the Study of Labor (IZA)

JOOST M. E. PENNINGS
Professor, University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics, Professor, Wageningen University and Research Center - School of Social Sciences

MICHAEL J. ROSZKOWSKI
Director, Institutional Research, La Salle University

HUGH SCHWARTZ
Visiting Professor, University of the Republic, Montevideo, Uruguay

ANDREI SHLEIFER
Professor of Economics, Harvard University - Department of Economics, Fellow, National Bureau of Economic Research (NBER), Fellow, European Corporate Governance Institute (ECGI)

PAUL SLOVIC
President, Decision Research, Professor, University of Oregon - Department of Psychology

GLENN E. SNELBECKER
Professor of Educational Psychology, Temple University - Psychological Studies in Education

CASS R. SUNSTEIN
Felix Frankfurter Professor of Law, Harvard University - Harvard Law School

RICHARD H. THALER
Robert P. Gwinn Professor of Behavioral Science and Economics, University of Chicago - Booth School of Business, National Bureau of Economic Research (NBER)

JOHN F. TOMER
Professor of Economics, Manhattan College - Department of Economics and Finance

PAUL J. ZAK
Director, Claremont Graduate University - Center for Neuroeconomics Studies

JASON ZWEIG
Personal Finance Columnist, The Wall Street Journal