NIKOS NIKIFORAKIS

Abstract

There are pronounced racial, ethnic, and gender gaps in income in the U.S. We investigate whether these correspond with differences in competitiveness, risk tolerance, and confidence relative to performance in a large, stratified sample of the U.S. prime-age population. We find substantial differences in all three traits across Black, Hispanic, and White males and females. These traits predict individual income. Competitiveness and risk tolerance help explain the White gender income gap. Competitiveness also affects the Black-White income gap between men. Confidence about one’s performance helps explain a substantial and significant portion of all five race-gender income gaps with White men. 

Abstract

How do pay inequality and risk inequality affect the willingness of teams to follow their leaders? We explore this question in a setting where leaders lead by example to mitigate the strategic uncertainty surrounding a decision. Using a simple model, we predict that pay inequality between leaders and team members undermines the effectiveness of leaders in coordinating their teams. Risk inequality can offset the negative impact of pay inequality if the leader is exposed to sufficiently more risk than the team members. We confirm both hypotheses in a large online experiment that varies the degree of pay inequality and risk inequality. Risk-averse team members and individuals who believe that their teammates are inequality-averse are the most responsive to both pay inequality and risk inequality. We obtain similar results in a lab experiment with larger teams and greater financial incentives.

Abstract

Cooperation often entails an unequal distribution of benefits. We study how inequality concerns affect the willingness to cooperate with others in an indefinitely repeated prisoner's dilemma. The experimental treatments vary the equality of payoffs resulting from mutual cooperation, the expected duration of an interaction, and whether the inequality remains constant throughout an interaction. At the aggregate level, we find that cooperation rates across treatments are accurately predicted by a model that assumes players solely care about their pecuniary payoffs. At the individual level, we find evidence that individuals care about treating others fairly, but not about inequality per se. 

Abstract

A substantial fraction of the gender gap in earnings is due to wage disparities between women with and without children. Inspired by evidence linking attitudes toward competition with labor-market outcomes, we explore the association between motherhood and the willingness to compete for pay. In two behavioral studies, one in the UAE and one in the USA, we find that mothers aged 18-30 are considerably less likely to choose a competitive payment scheme than similar women without children. The motherhood gap in competitiveness is not mediated by differences in ability, beliefs, risk attitudes, marital status, parental education, or the time since

the last pregnancy. In a third study, using survey data from a Dutch panel, we do not find support for the hypothesis that motherhood causes women’s competitiveness to drop. Instead, the findings suggest that the reduced competitiveness of mothers predates the birth of their children. Fathers, across studies, are at least as willing as non-fathers to compete for pay.

Abstract

Evidence from behavioral experiments with volunteer samples suggests that there exists a substantial gap in the willingness of men and women to compete. We ask whether a similar gap can be found in a population of economics majors – a population of interest as questions loom regarding the reasons for the underrepresentation of women in economics. We find a substantial gender gap in competitiveness – as well as in risk attitudes – among economics majors. We also find that self-selection into the lab causes us to overestimate this gap among volunteers by a factor of 2 to 3 depending on the econometric model.

Abstract

Physical inactivity is a leading cause globally of noncommunicable diseases such as diabetes, heart attacks, and strokes. Here, we present the results from an experimental test of a nudge designed to promote physical activity among senior adults in Abu Dhabi, United Arab Emirates – a population with one of the highest rates of physical inactivity in the world. We find that the “Forever Fit” nudge — a booklet with information about the health benefits of physical activity and a simple exercise program — has a large positive effect on a sample of 206 seniors that were previously inactive. The nudge increases the time participants spend being physically active by more than 10 minutes per day — a 202% increase.