A06
Educational Choices, Market Design, and Student Outcomes
Discussion Papers

Discussion Paper No. 260
November 9, 2021

COVID-19 and Educational Inequality: How School Closures Affect Low- and High-Achieving Students

Author:

Elisabeth Grewenig (ifo Institute)
Philipp Lergetporer (ifo Institute)
Katharina Werner (ifo Institute)
Ludger Woessmann (ifo Institute)
Larissa Zierow (ifo Institute)

Abstract:

In spring 2020, governments around the globe shut down schools to mitigate the spread of the novel coronavirus. We argue that low-achieving students may be particularly affected by the lack of educator support during school closures. We collect detailed time-use information on students before and during the school closures in a survey of 1,099 parents in Germany. We find that while students on average reduced their daily learning time of 7.4 hours by about half, the reduction was significantly larger for low-achievers (4.1 hours) than for high-achievers (3.7 hours). Low-achievers disproportionately replaced learning time with detrimental activities such as TV or computer games rather than with activities more conducive to child development. The learning gap was not compensated by parents or schools who provided less support for low-achieving students. The reduction in learning time was not larger for children from lower-educated parents, but it was larger for boys than for girls. For policy, our findings suggest binding distance-teaching concepts particularly targeted at low-achievers.

Keywords:

educational inequality; COVID-19; low-achieving students; home schooling; distance teaching;

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Discussion Paper No. 259

Gender Norms and Labor-Supply Expectations: Experimental Evidence from Adolescents

Author:

Elisabeth Grewenig (ifo Institute)
Philipp Lergetporer (ifo Institute)
Katharina Werner (ifo Institute)

Abstract:

Gender gaps in labor-market outcomes often emerge with the arrival of the first child. We investigate a causal link between gender norms and labor-supply expectations within a survey experiment among 2,000 German adolescents. Using a hypothetical scenario, we document that the majority of girls expects to work 20 hours or less per week when having a young child, and expects from their partner to work 30 hours or more. Randomized treatments that highlight the existing traditional norm towards mothers significantly reduce girls’ self-expected labor supply and thereby increase the expected gender difference in labor supply between their partners and themselves (the expected within-family gender gap). Treatment effects persist in a follow-up survey two weeks later, and extend to incentivized outcomes. In a second experiment, we highlight another, more gender-egalitarian, norm towards shared household responsibilities and show that this attenuates the expected within-family gender gap. Our results suggest that social norms play an important role in shaping gender gaps in labor-market outcomes around child birth.

Keywords:

gender norms; female labor supply; survey experiment;

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Discussion Paper No. 250

Sin taxes and Self-Control

Author:

Renke Schmacker (DIW Berlin)
Sinne Smed (University of Copenhagen)

Abstract:

"Sin taxes" are high on the political agenda in the global fight against obesity. According to theory, they are welfare improving if consumers with low self-control are at least as price responsive as consumers with high self-control, even in the absence of externalities. In this paper, we investigate if consumers with low and high self-control react differently to sin tax variation. For identification, we exploit two sets of sin tax reforms in Denmark: first, the increase of the soft drink tax in 2012 and its repeal in 2014 and, second, the fat tax introduction in 2011 and its repeal in 2013. We assess the purchase response empirically using a detailed homescan household panel. Our unique dataset comprises a survey measure of self-control linked to the panelists, which we use to divide the sample into consumers with low and high levels of self-control. We find that consumers with low self-control reduce purchases less strongly than consumers with high self-control when taxes go up, but increase purchases to a similar extent when taxes go down. Hence, we document an asymmetry in the responsiveness to increasing and decreasing prices. We find empirical and theoretical support that habit formation shapes the differential response by self-control. The results suggest that price instruments are not an effective tool for targeting self-control problems.

Keywords:

self-control; soft drink tax; fat tax; sin tax; internality;

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Discussion Paper No. 249

Culture and Student Achievement: The Intertwined Roles of Patience and Risk-Taking

Author:

Eric A. Hanushek (Standford University)
Lavinia Kinne (ifo Institute)
Philipp Lergetporer (ifo Institute)
Ludger Woessmann (LMU Munich, ifo Institute)

Abstract:

Patience and risk-taking – two cultural traits that steer intertemporal decision-making – are fundamental to human capital investment decisions. To understand how they contribute to international differences in student achievement, we combine PISA tests with the Global Preference Survey. We find that opposing effects of patience (positive) and risk-taking (negative) together account for two-thirds of the cross-country variation in student achievement. In an identification strategy addressing unobserved residence-country features, we find similar results when assigning migrant students their country-of-origin cultural traits in models with residence-country fixed effects. Associations of culture with family and school inputs suggest that both may act as channels.

Keywords:

culture; patience; risk-taking; preferences; intertemporal decision-making; international student achievement; PISA;

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Discussion Paper No. 241

Two Field Experiments on Self-Selection, Collaboration Intensity, and Team Performance

Author:

Mira Fischer (WZB Berlin)
Rainer M. Rilke (WHU - Otto Beisheim School of Management)
B. Burcin Yurtoglu (WHU - Otto Beisheim School of Management)

Abstract:

We analyze how the team formation process influences the ability composition and performance of teams, showing how self-selection and random assignment affect team performance for different tasks in two natural field experiments. We identify the collaboration intensity of the task as the key driver of the effect of self-selection on team performance. We find that when the task requires low collaborative efforts, the team performance of self-selected teams is significantly inferior to that of randomly assigned teams. When the task involves more collaborative efforts, self-selected teams tend to outperform randomly assigned teams. We observe assortative matching in self-selected teams, with subjects more likely to match with those of similar ability and the same gender.

Keywords:

team performances; self-selection; field experiment; education;

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Discussion Paper No. 231

The Separation and Reunification of Germany: Rethinking a Natural Experiment Interpretation of the Enduring Effects of Communism

Author:

Sascha O. Becker (Monash University)
Lukas Mergele (ifo Institute)
Ludger Woessmann (LMU Munich, ifo Institute)

Abstract:

German separation in 1949 into a communist East and a capitalist West and their reunification in 1990 are commonly described as a natural experiment to study the enduring effects of communism. We show in three steps that the populations in East and West Germany were far from being randomly selected treatment and control groups. First, the later border is already visible in many socio-economic characteristics in pre-World War II data. Second, World War II and the subsequent occupying forces affected East and West differently. Third, a selective fifth of the population fled from East to West Germany before the building of the Wall in 1961. In light of our findings, we propose a more cautious interpretation of the extensive literature on the enduring effects of communist systems on economic outcomes, political preferences, cultural traits, and gender roles.

Keywords:

political systems; communism; preferences; culture; Germany;

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Discussion Paper No. 222

Fair Procedures with naive Agents: Who Wants the Boston Mechanism?

Author:

Tobias König (Linnaeus University)
Dorothea Kübler (TU Berlin, WZB Berlin)
Lydia Mechtenberg (University Hamburg)
Renke Schmacker (DIW Berlin)

Abstract:

We study preferences over procedures in the presence of naive agents. We employ a school choice setting following Pathak and Sönmez (2008) who show that sophisticated agents are better off under the Boston mechanism than under a strategy-proof mechanism if some agents are sincere. We use lab experiments to study the preferences of subjects for the Boston mechanism or the assortative matching. We compare the preferences of stakeholders who know their own role with agents behind the veil of ignorance and spectators. As predicted, stakeholders vote for the Boston mechanism if it maximizes their payoffs and vote for the assortative matching otherwise. This is in line with the model of Pathak and Sönmez (2008). Subjects behind the veil of ignorance mainly choose the Boston mechanism when the priority at schools is determined randomly. In a second experiment with priorities based on performance in a real-effort task, spectators whose payoff does not depend on the choice of the mechanism are split in their vote for the Boston mechanism and the assortative matching. According to the spectators’ statements in the post-experimental questionnaire, the main reason for preferring the Boston mechanism is that playing the game well deserves a higher payoff. These findings provide a novel explanation for the widespread use of the Boston mechanism.

Keywords:

matching markets; school choice; voting; Boston mechanism; naive agents; stable assortative matching;

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Discussion Paper No. 219

The E-Word - On the Public Acceptance of Experiments

Author:

Mira Fischer (WZB Berlin)
Elisabeth Grewenig (ifo Institute)
Philipp Lergetporer (ifo Institute)
Katharina Werner (ifo Institute)

Abstract:

Randomized experiments are often viewed as the “gold standard” of scientific evidence but people’s scepticism towards experiments has compromised their viability in the past. We study preferences for experimental policy evaluations in a representative survey in Germany (N>1,900). We find that a majority of 75% supports the idea of small-scale evaluations of policies before enacting them at a large scale. Experimentally varying whether the evaluations are explicitly described as “experiments” has a precisely estimated overall zero effect on public support. Our results indicate political leeway for experimental policy evaluation, a practice that is still uncommon in Germany.

Keywords:

experiment aversion; policy experimentation; education;

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Discussion Paper No. 179
November 8, 2021

How to Avoid Black Markets for Appointments with Online Booking Systems

Author:

Rustamdjan Hakimov (University of Lausanne)
Christian-Philipp Heller (NERA Consulting)
Dorothea Kübler (WZB Berlin)
Morimitsu Kurino (Kein University Tokyo)

Abstract:

Allocating appointment slots is presented as a new application for market design. We consider online booking systems that are commonly used by public authorities to allocate appointments for driver's licenses, visa interviews, passport renewals, etc. We document that black markets for appointments have developed in many parts of the world. Scalpers book the appointments that are offered for free and sell the slots to appointment seekers. We model the existing first-come-first-served booking system and propose an alternative system. The alternative system collects applications for slots for a certain time period and then randomly allocates slots to applicants. We investigate the two systems under conditions of low and high demand for slots. The theory predicts and lab experiments confirm that scalpers profitably book and sell slots under the current system with high demand, but that they are not active in the proposed new system under both demand conditions.

Keywords:

market design; online booking system; first come first served; scalping;

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Discussion Paper No. 167

The Formation of Prosociality: Causal Evidence on the Role of Social Environment

Author:

Fabian Kosse (LMU Munich)
Thomas Deckers (University of Bonn)
Pia Pinger (University of Bonn)
Hannah Schildberg-Hörisch (DICE)
Armin Falk (University of Bonn)

Abstract:

This study presents descriptive and causal evidence on the role of social environment for the formation of prosociality. In a first step, we show that socio-economic status (SES) as well as the intensity of mother-child interaction and mothers' prosocial attitudes are systematically related to elementary school children's prosociality. In a second step, we present evidence on a randomly-assigned variation of the social environment, providing children with a mentor for the duration of one year. Our data include a two-year follow-up and reveal a significant and persistent increase in prosociality in the treatment relative to the control group. Moreover, enriching the social environment bears the potential to close the observed gap in prosociality between low and high SES children. A mediation analysis of the observed treatment effect suggests that prosociality develops in response to stimuli in the form of prosocial role models and intense social interactions.

Keywords:

formation of preferences; prosociality; social preferences; trust; social inequality;

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