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Handedness, Ability, Earnings and Risk. Evidence from the Lab

Author

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  • Marcello Sartarelli

    (Dpto. Fundamentos del Análisis Económico)

Abstract

The relationship between handedness, ability and, in addition, their joint role in explaining earnings and decisions under risk is studied experimentally to shed new light on the mechanisms behind the mixed evidence in survey data. Data on 432 under graduate students show that left-handed (L) do not obtain a significantly different Cognitive Reflection Test score relative to others nor different payoffs in a stylized labour market with agents working for principals and being paid for exerting costly effort, a proxy for earnings. In addition, they are not significantly more risk averse. In partial contrast, their self-reported achievement at university tends to be significantly higher and driven by females although weakly for some specifications. Finally, when looking at personality traits, measured using the Big Five test, L are significantly more agreeable, showing higher preferences for cooperation, and also tend to be more extroverted, in particular more sociable.

Suggested Citation

  • Marcello Sartarelli, 2016. "Handedness, Ability, Earnings and Risk. Evidence from the Lab," Working Papers. Serie AD 2016-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2016-04
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2016-04.pdf
    File Function: Fisrt version / Primera version, 2016
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    References listed on IDEAS

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    Cited by:

    1. Marcello Sartarelli, 2016. "Handedness, Earnings, Ability and Personality. Evidence from the Lab," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-17, October.
    2. Lau Lilleholt, 2019. "Cognitive ability and risk aversion: A systematic review and meta analysis," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(3), pages 234-279, May.

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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