Immigrants and Ethnic Differences

High profile high earnings occupations tend to have a

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Unformatted text preview: rmance on a task (simple addition) and this relates to decisions to enter competitive games. High profile, high earnings occupations tend to have a “winner takes all” compensation scheme, which could hurt women if they shy away from these types of jobs. Fortin – Econ 560 Lecture 4B Gneezy et al (2003) in lab experiments asks students to solve mazes Evidence suggests that, while both men and women do tasks equally well when paid by piece rate, boys do better in competitive environments while girls do not. However, women do as well as men in the competitive setting if the groups are single-sex Niederle and Vesterlund (2007) expand upon this work In experimental environment, they study the compensation choices men and women make in a mixed sex environment Task: Adding up sets of five two-digit numbers Choices: piece rate and tournament-like winner-take-all Unlike earlier findings, boys and girls do equally well under both scenarios However, despite equal ability, boys were more than twice as likely to choose the tournament. Importantly, high performing women are less likely to choose a tournament than the men that were in the lowest quartile, suggesting too few high-ability women and too many low-ability men entering the tournament. Fortin – Econ 560 Lecture 4B Kamas and Preston (2012) conducted an experiment on 310 student participants (156 men, 154 women) from Santa Clara University o All participants in our experiments completed math tasks which involved adding three two-digit numbers over a two minute period. o They were offered various compensation schemes: o In the piece rate round, $0.60 per correct answer. o In the competition compensation scheme where the participant is competing against three other anonymous persons in the classroom, a winner-take-all (WTA) tournament where the person with the highest score is paid $2.40 per correct answer while the others are paid nothing, and the other is a ranked compensation treatment (RC) where the person who scores the highest in the group of four receives $1.05 per point, the second highest scorer earns $0.75 per point, the third highest receives $0.45, and the lowest gets $0.15 per point. Fortin – Econ 560 Lecture 4B 90 Humanities and other social science majors Female Score in piece rate Risk averse Perception of risk taking Expected score in piece rate Certainty in piece rate Estimated ranking Pseudo R2 Sample STEM majors (1) (4) (2) −0.243 (0.030) 0.026** (0.044) (3) −0.216 (0.072) 0.031** (0.021) −0.159 (0.173) 0.018 (0.175) −0.047 (0.788) 0.106** (0.014) ** −0.031 (0.845) 0.079* (0.060) * −0.115 (0.181) 0.031*** (0.001) Business school (5) (6) (7) −0.128 (0.163) 0.031*** (0.001) −0.042 (0.673) 0.023*** (0.053) −0.467*** (0.001) 0.044 (0.180) −0.478*** (0.001) 0.033 (0.346) −0.002 (0.846) −0.341 (0.006) 0.000 (0.971) 0.132 (0.348) −0.032 (0.446) 0.001 (0.980) −0.286 0.156 83 −0.270 (0.014) 0.000 (0.9640) *** 0.351 83 −0.188 *** (0.000) 0.116 127 0.230 127 0.2...
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