This paper investigates physiological responses to perceptions of unfair pay. In a simple principal agent experiment agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. In this environment unfairness can arise if an agent's reward expectation is not met. Throughout the experiment we record agents' heart rate variability. ...
This paper presents new evidence concerning the relationship between environmental conditions in the year of birth (as reflected in the infant mortality rate (IMR) and gross domestic product per capita) and adult health (adult height). We perform an analysis across Spanish regions for cohorts born between 1961 and 1980, a period when the country underwent a socio-economic and political transformation. ...
We use life satisfaction and Body Mass Index (BMI) information from three waves of the SOEP to test for social interactions in BMI between spouses. Social interactions require that the cross-partial effect of partner's weight and own weight in the utility function be positive. Using life satisfaction as a utility proxy, semi-parametric regressions show that the correlation between satisfaction and ...
The aim of this paper is to apply recently proposed individual welfare measures in the context of random utility models of labour supply. Contrary to the standard practice of using reference preferences and wages, these measures preserve preference heterogeneity in the normative step of the analysis. They also make the ethical priors, implicit in any interpersonal comparison, more explicit. On the ...
Despite the relatively extensive research on pay levels and the consequences of income disparities, little is known about which reference groups people choose for comparative evaluation of personal income and why different selection patterns emerge. The aim of this paper is to dig deeper for answers to the following three questions: (1) What are the most important reference groups for income comparisons? ...
Using a micro-level approach to poverty traps, this paper explores welfare dynamics among households in post-war rural Mozambique. Conceptually, the paper builds on an asset-based approach to poverty and tests empirically, with household panel data, for the existence of a poverty trap. Findings indicate that there is little differentiation in productive asset endowments over time and that rural households ...