Beliefs and self-selection in a dual labor markets: an experiment Thesis

short description

  • Master's thesis

Thesis author

  • Romero, Steffanny

abstract

  • In a dual labor market experiment, we examine how information and beliefs about teammates' decisions affect the individual selection of contribution and productivity. Participants must choose either a contributive (Market C) or a non-contributive labor market (Market NC) over five rounds. We randomized two types of information: in the Baseline treatment group, the participants receive individual performance-related details; in the Market Info we additionally present teammate's market selection and the earnings in each market. We find that i) Market Info increases the likelihood to select Market C; ii) Market selection is affected by beliefs, the higher the expected number of group-mates opting for Market C, the higher the probability to mimic their choice; and iii) the average productivity changes neither between markets nor treatments arms as we expected. However, we have some suggestive evidence that productivity changes across beliefs.

publication date

  • April 30, 2022 12:32 AM

keywords

  • Beliefs
  • Contributions
  • Coordination
  • Information
  • Labor Markets
  • Online Experiments

Document Id

  • 14480e2c-bc01-49d3-a2cd-e7f479c0f7f1