High-performance work systems give workers more discretion, thereby increasing effortproductivity but also shirking opportunities. We show experimentally that screening for workattitude and labor market competition are causal determinants of the viability of high-performancework systems, and we identify the complementarities between discretion, rent-sharing, andscreening that render them profitable. Two fundamentally distinct job designs emergeendogenously in our experiments: "bad" jobs with low discretion, low wages, and little rentsharing,and "good" jobs with high discretion, high wages, and substantial rent-sharing. Good jobsare profitable only if employees can be screened, and labor market competition fosters theirdissemination.
This paper exploits variation in the timing and outcomes of
employment discrimination lawsuits against U.S. law enforcement agencies
to estimate the cumulative and persistent employment effects of
temporary externally imposed affirmative action (AA). We find that AA
increased black employment at all ranks by 4.5 to 6.2 percentage points
relative to national trends. We also find no erosion of these employment
gains in the fifteen years following AA termination, although black
employment growth was significantly lower in departments after AA ended
than in departments whose plans continued. For women, in contrast, we
find only marginal employment gains at lower ranks.
This paper provides evidence that scores on simple, low-stakes tests are associated with future economic success because the scores also reflect test takers' personality traits associated with their level of intrinsic motivation. To establish this, I use the coding speed test that was administered without incentives to participants in the National Longitudinal Survey of Youth (NLSY). I show that, controlling for cognitive ability, the coding speed scores are correlated with future earnings of male NLSY participants. I provide evidence that the coding speed scores relate to intrinsic motivation. I show that the scores of the highly motivated, though less educated, group (potential recruits to the U.S. military), are higher than the NLSY participants' scores. I use controlled experiments to show directly that intrinsic motivation is an important component of the unincentivized coding speed scores and that it relates to test takers' personality traits.
We often have to make risky decisions between alternatives with outcomes that can be better or worse than the outcomes of safer alternatives. Although previous studies have implicated various brain regions in risky decision making, it remains unknown which regions are crucial for balancing whether to take a risk or play it safe. Here, we focused on the anterior insular cortex (AIC), the causal involvement of which in risky decision making is still unclear, although human imaging studies have reported AIC activation in various gambling tasks. We investigated the effects of temporarily inactivating the AIC on rats' risk preference in two types of gambling tasks, one in which risk arose in reward amount and one in which it arose in reward delay. As a control within the same subjects, we inactivated the adjacent orbitofrontal cortex (OFC), which is well known to affect risk preference. In both gambling tasks, AIC inactivation decreased risk preference whereas OFC inactivation increased it. In risk-free control situations, AIC and OFC inactivations did not affect decision making. These results suggest that the AIC is causally involved in risky decision making and promotes risk taking. The AIC and OFC may be crucial for the opposing motives of whether to take a risk or avoid it.
Emotions seem to play a critical role in moral judgment. However, the way in which emotions exert their influence on moral judgments is still poorly understood. This study proposes a novel theoretical approach suggesting that emotions influence moral judgments based on their motivational dimension. We tested the effects of two types of induced emotions with equal valence but with different motivational implications (anger and disgust), and four types of moral scenarios (disgust-related, impersonal, personal, and beliefs) on moral judgments. We hypothesized and found that approach motivation associated with anger would make moral judgments more permissible, while disgust, associated with withdrawal motivation, would make them less permissible. Moreover, these effects varied as a function of the type of scenario: the induced emotions only affected moral judgments concerning impersonal and personal scenarios, while we observed no effects for the other scenarios. These findings suggest that emotions can play an important role in moral judgment, but that their specific effects depend upon the type of emotion induced. Furthermore, induced emotion effects were more prevalent for moral decisions in personal and impersonal scenarios, possibly because these require the performance of an action rather than making an abstract judgment. We conclude that the effects of induced emotions on moral judgments can be predicted by taking their motivational dimension into account. This finding has important implications for moral psychology, as it points toward a previously overlooked mechanism linking emotions to moral judgments.
It is increasingly clear that simple decisions are made by computing decision values for the options under consideration, and then comparing these values to make a choice. Computational models of this process suggest that it involves the accumulation of information over time, but little is known about the temporal course of valuation in the brain. To examine this, we manipulated the available decision time and observed the consequences in the brain and behavioral correlates of choice. Participants were scanned with functional magnetic resonance imaging while they chose to eat or not eat basic food items, in two conditions differing in the amount of time provided for choice. After identifying valuation-related regions with unbiased whole-brain general linear models, we analyzed two regions of interest: ventromedial prefrontal cortex (VMPFC) and dorsolateral prefrontal cortex (DLPFC). Finite impulse response models of the upsampled estimated neural activity from those regions allowed us to examine the onset, duration and termination of decision value signals, and to compare across regions. We found evidence for the immediate onset of value computation in both regions, but an extended duration with longer decision time. However, this was not accompanied by behavioral changes in either the accuracy or determinants of choice. Finally, there was modest evidence that DLPFC computation correlated with, but lagged behind, VMPFC computation, suggesting the sharing of information across these regions. These findings have important implications for models of decision value computation and choice.
The brain seeks to combine related inputs from different senses (e.g., hearing and vision), via multisensory integration. Temporal information can indicate whether stimuli in different senses are related or not. A recent human fMRI study (Noesselt et al. [2007]: J Neurosci 27:11431-11441) used auditory and visual trains of beeps and flashes with erratic timing, manipulating whether auditory and visual trains were synchronous or unrelated in temporal pattern. A region of superior temporal sulcus (STS) showed higher BOLD signal for the synchronous condition. But this could not be related to performance, and it remained unclear if the erratic, unpredictable nature of the stimulus trains was important. Here we compared synchronous audiovisual trains to asynchronous trains, while using a behavioral task requiring detection of higher-intensity target events in either modality. We further varied whether the stimulus trains had predictable temporal pattern or not. Synchrony (versus lag) between auditory and visual trains enhanced behavioral sensitivity (d') to intensity targets in either modality, regardless of predictable versus unpredictable patterning. The analogous contrast in fMRI revealed BOLD increases in several brain areas, including the left STS region reported by Noesselt et al. [2007: J Neurosci 27:11431-11441]. The synchrony effect on BOLD here correlated with the subject-by-subject impact on performance. Predictability of temporal pattern did not affect target detection performance or STS activity, but did lead to an interaction with audiovisual synchrony for BOLD in inferior parietal cortex.
Optimal choices benefit from previous learning. However, it is not clear how previously learned stimuli influence behavior to novel but similar stimuli. One possibility is to generalize based on the similarity between learned and current stimuli. Here, we use neuroscientific methods and a novel computational model to inform the question of how stimulus generalization is implemented in the human brain. Behavioral responses during an intradimensional discrimination task showed similarity-dependent generalization. Moreover, a peak shift occurred, i.e., the peak of the behavioral generalization gradient was displaced from the rewarded conditioned stimulus in the direction away from the unrewarded conditioned stimulus. To account for the behavioral responses, we designed a similarity-based reinforcement learning model wherein prediction errors generalize across similar stimuli and update their value. We show that this model predicts a similarity-dependent neural generalization gradient in the striatum as well as changes in responding during extinction. Moreover, across subjects, the width of generalization was negatively correlated with functional connectivity between the striatum and the hippocampus. This result suggests that hippocampus-striatal connections contribute to stimulus-specific value updating by controlling the width of generalization. In summary, our results shed light onto the neurobiology of a fundamental, similarity-dependent learning principle that allows learning the value of stimuli that have never been encountered.
This paper examines the evolution of female labor market outcomes from 1987 to 2008 by assessing the role of changing labor demand requirements in four developing countries: Brazil, Mexico, India and Thailand. The results highlight the importance of structural change in reducing gender disparities by decreasing the labor demand for physical attributes. The results show that India, the country with the greatest physical labor requirements, exhibits the largest labor market gender inequality. In contrast, Brazil's labor requirements have followed a similar trend seen in the United States, reducing gender inequality in both wages and labor force participation.
This paper investigates how precisely short-term, job-search oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the heterogeneity of treatment effects according to the timing of training during unemployment as well as across different subgroups of participants. We find that participating in short-term training reduces the remaining time in unemployment and moderately increases job stability. Long-term training programs initially prolong the remaining time in unemployment, but once the scheduled program end is reached participants exit to employment at a much faster rate than without training. In addition, they benefit from substantially more stable employment spells and higher earnings. Overall, long-term training programs are well effective in supporting the occupational advancement of very heterogeneous groups of participants, including those with generally weak labor market prospects. However, from a fiscal perspective only the low-cost short-term training schemes are cost efficient in the short run.
