SUMMARY We develop a panel data model explaining answers to subjective probabilities about binary events and estimate it using from the Health Retirement Study on six such probabilities. The explicitly accounts for several forms of ‘reporting behavior’: rounding, focal point ‘50%’ item nonresponse. find observed unobserved heterogeneity in tendencies report rounded values or answer, persistency 50% over time. Focal matter some Incorporating reporting behavior does not have large effect...

Standard economic models tend to be more specific about pecuniary payoffs than nonpecuniary education. Based on the ideas of Akerlof and Kranton, we consider a model career choice identity where individuals derive payoffs. Using factor analysis range attitude questions, find two factors related (career orientation social orientation), which are important for planned educational choices observed gender differences. The implication is that policy makers institutions higher education need focus...

Summary Occupational segregation by gender remains widespread and explains a significant part of the wage gap. We shed light on reasons why occupational persists despite increases in women's education labor force participation, it results Women express stronger relative preference than men for occupations that are valuable to society, which we argue is captured their prestige. If women prefer with higher prestige, they will earn lower wages because compensating differentials. Using...

Abstract While the low coverage levels of Latin American pension systems are amply documented, inequalities within demographics beyond income and education less understood. To fill this gap, article analyses racial ethnic differences in Colombia. Since minorities Colombia disproportionally poor, old‐age pensions especially important for these marginalized populations. The finds that indigenous and, to a lesser extent, afro‐Colombians their partners significantly likely contribute any...

Standard economic models which focus on pecuniary payoffs cannot explain why there are highly able individuals who choose careers with low returns. Therefore, financial incentives unlikely to be effective in influencing career choices of these individuals. Based Akerlof and Kranton (2000), we consider a model choice identity where derive non-pecuniary payoffs. Using factor analysis range attitude questions, find two factors related (career orientation social orientation), important for...

Occupational segregation by gender is prevalent and can explain some of the wage gap. I empirically investigate a possible explanation for this segregation: difference in preferences competition, which recent experimental studies has been found to affect economic outcomes. find that women's greater distaste competition decreases educational achievement. It also part occupational fields. Specifically, accounting reduces fields Law, Business & Management, Health, Education.

Preparing for the end of life, especially prospect needing long-term are, is an important issue facing older Americans. Those who reach age 65 have a 40% chance going into nursing home in their remaining lifetime, and about 10% those do will stay there at least five years. The costs are high with on average US$70,000 annually private room. Long-term stays homes therefore, not likely, but very expensive. In this paper, we examine individual expectations future entry study relationship between...

We develop and estimate a panel data model explaining the answers to questions about subjective probabilities, using from US Health Retirement Study. explicitly account for nonresponse, rounding, focal point 50 percent answers. Our results indicate that three of four considered, almost all can be explained by rounding. also find observed unobserved heterogeneity in tendencies report rounded values or answer, persistency percent-answers over time. Incorporating rounding changes some...

We develop and estimate a panel data model explaining the answers to questions about subjective probabilities, using from US Health Retirement Study. explicitly account for nonresponse, rounding, focal point “50 percent” answers. Our results indicate that three of four considered, almost all 50 percent can be explained by rounding. also find observed unobserved heterogeneity in tendencies report rounded values or answer, persistency percent-answers over time. Incorporating rounding changes...

Locus of control, that is, people's perception how much influence they have over their lives, is an important predictor for economic outcomes – earnings, health and education, to name a few. This article uses difference-in-differences analysis investigate the importance institutional environment development locus using fall Berlin Wall as exogenous shock educational system in East Germany. Using data from German Socioeconomic Panel (SOEP), we find women showed less external control following...

Abstract The fall of the Berlin Wall in November 1989 resulted a severe economic downturn and stark temporary decline fertility East Germany. But did it also affect future generations? In this paper, I investigate early motherhood – marker lifetime disadvantage those born years immediately after Wall. Using data from German Socioeconomic Panel difference-in-differences specification comparing “Daughters Wall” with Germans adjacent West order to control for region fixed-effects time-varying...

The noncognitive skill of conscientiousness has been linked to favourable labour market and health outcomes. But how is affected by events that happen in childhood? We investigate the effects negative parental selection economic social upheaval on adulthood using data from German Socioeconomic Panel (SOEP). Our identification strategy exploits steep drop fertility occurred former East Germany following fall Berlin Wall collapse socialist regime. Using an event study analysis a...

The Colombian pension reform of 1994 introduced a privately administered defined–contribution programme, which coexists with reformed public defined–benefit programme. This paper gives an overview the system and evaluates its performance using four criteria: (1) effectiveness, (2) efficiency, (3) equity, (4) sustainability, finding evidence severe shortcomings. Both effective coverage benefit levels are low, costs in private programme high, there is that insured persons not fully informed...

We study how severe acute health shocks affect the probability of not working in U. S. versus Denmark. The results only provide insight into relative disease risk affects labor force participation at older ages, but also different types care and insurance systems individual decisions participation. find that effect an shock on is stronger U.S. than Denmark, compelling evidence this result system-related differential mortality baseline differences.

Unemployment results in lower levels of cognitive skills and has long-term effects on health economic well-being. In this paper, I show that unemployment also negative noncognitive skills, at least the short term. Using a sample Germans born between 1945 1995, account for potential endogeneity by using state-level rates as instruments controlling past skills. The not working are strong, reducing conscientiousness 0.15 standard deviation women 0.25 men.

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