With or Without Siblings: Sorting into Competition in the Experimental Chinese Labor Market

Li Yu, Associate Professor in the China Center for Human Capital and Labor Market Research at the Central University of Finance and Economics, Beijing, will present on March 25th in Room 105 of the Agricultural Administration Building (2120 Fyffe Road) as part of the AEDE Applied Economics Seminar Series. Her presentation will focus on her research: "With or Without Siblings: Sorting into Competition in the Experimental Chinese Labor Market."

Abstract: We examine whether Chinese only children and children with siblings, having similar abilities as well as similar risks and social preferences, differ in their selection into a competitive environment. Participants in a laboratory experiment solve a real task, first under a non-competitive piece rate and then under a competitive tournament incentive scheme. We find a significant differential sorting behavior into tournament between only children and children with siblings, even after controlling for gender, ability, risk attitude, social preference and other individual characteristics. Only children tend to underestimate their winning chances and shy away from competition. But as the only children get more confident, they embrace competition compared to their comparatively equivalent counterpart.

This event is open to the public and RSVPs are not required. If you have any questions, please contact us.