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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
    as

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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

    as
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    3. Brañas-Garza, Pablo & Kujal, Praveen & Lenkei, Balint, 2019. "Cognitive reflection test: Whom, how, when," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    4. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    5. Christopher S. Ruebeck & Joseph E. Harrington, Jr & Robert Moffitt, 1997. "Handedness and Earnings," Economics Working Paper Archive 533, The Johns Hopkins University,Department of Economics, revised Jun 2004.
    6. Heckman, James J. & Kautz, Tim, 2012. "Hard evidence on soft skills," Labour Economics, Elsevier, vol. 19(4), pages 451-464.
    7. Cueva, Carlos & Iturbe-Ormaetxe, Iñigo & Mata-Pérez, Esther & Ponti, Giovanni & Sartarelli, Marcello & Yu, Haihan & Zhukova, Vita, 2016. "Cognitive (ir)reflection: New experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 64(C), pages 81-93.
    8. Maria Cubel & Ana Nuevo‐Chiquero & Santiago Sanchez‐Pages & Marian Vidal‐Fernandez, 2016. "Do Personality Traits Affect Productivity? Evidence from the Laboratory," Economic Journal, Royal Economic Society, vol. 0(592), pages 654-681, May.
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    11. Maria Cubel & Ana Nuevo-Chiquero & Santiago Sanchez-Pages & Marian Vidal-Fernandez, 2014. "Do Personality Traits Affect Productivity? Evidence from the Lab," Working Papers 2014012, The University of Sheffield, Department of Economics.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Ability; Big Five; CRT; earnings; gender; handedness; leftie; left-handed; personality traits; risk.;

    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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