AØKK08323U Seminar: Behavioral Economics at Work

Volume 2014/2015
Education
M.Sc, of Economics
(Only available for Master students at Department of Economics)
Content

The following set of questions exemplifies the topics that we will discuss during the seminar:

  • How do individual preferences and personality influence our educational decisions, the types of jobs that we select into, and our behavior in the workplace?
  • How do present biases, loss aversion, and biased beliefs about employment and earnings prospects affect people’s job search strategy and employment outcomes?
  • Should policy makers take these aspects into account when designing labor market policies? What is the right mix between traditional policy instruments and “nudge”-based approaches?
  • How do beliefs about earnings possibilities and other reference points affect our behavior on the job?  What role does the presence and behavior of coworkers play?   
  • Do limitations in attention and self-control influence the effectiveness of deadlines, performance targets, and other aspects of employment relationships?
  • What determines whether employees feel compensated fairly? Can economic incentives have dysfunctional effects? How does the interplay between pecuniary incentives and psychological motives influence performance?
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Learning Outcome
  1. In the past decades, a growing body of research has demonstrated that people’s behavior is not only influenced by economic incentives, but instead depends on a multitude of psychological motives, as well as on individual limitations in self-control, attention, and other biases. Since human decision making is ubiquitous in labor markets, such findings are highly relevant for understanding the functioning of these markets. In this seminar, we will discuss how research in behavioral economics has enriched our understanding of people’s behavior in the workplace and their advancement in the labor market, more generally. We will also discuss how a better knowledge of the psychological foundations of behavior can help improve compensation structures and the design of labor market policies.

The following surveys give an introduction to the topic. Further references will be provided at the beginning of the course.

  • DellaVigna, S. (2009): “Psychology and Economics: Evidence from the Field”, Journal of Economic Literature, 47, 315-372.
  • Dohmen, D. (2014): “Behavioural Labour Economics: Advances and Future Directions”, IZA Discussion Paper No. 8263.
The seminar does not require specific previous knowledge of behavioral economics. However, students should have basic knowledge of microeconomic theory, experimental methods, and econometrics (basic courses taught at BA level).
The structure of the course will be as follows:
1. Introduction: The course will be introduced by 1-2 lectures in the beginning of the semester (which outline the main idea and the relevant literature).
2. Student presentation: there will be a two-days workshop in April / May where students present their term paper (see below).
3. Term paper: students are required to write a 12-page paper on a subject of their choice within one of the course’s main themes. The paper has to be handed in within 2 weeks after the workshop presentations. The paper can take various forms. One possibility is to thoroughly analyze and discuss an influential article on the selected topic. A second possibility is that students perform their own empirical investigation, based on the data underlying the selected article or based on additional data that students assemble themselves. Third, students can propose an experimental design / empirical strategy to address a new research question on their topic of interest. In the latter cases, the teacher will assist students with the empirical design and analysis.
  • Category
  • Hours
  • Exam
  • 0,3
  • Seminar
  • 0
  • Total
  • 0,3
Credit
7,5 ECTS
Type of assessment
Written assignment
Oral examination, 20 min under invigilation
A written seminar paper and a oral presentation for the others participans at the seminar.
Exam registration requirements
Attendance on the seminar. The mandatory commitment paper and seminar paper have been handed in at deadline.
Aid

Al aids for the written seminarpaper.

For the oral presentation the slices for the presentation. The teather can specifiy what else is allowed.

Marking scale
7-point grading scale
Censorship form
External censorship
up to 20 % censorship at the seminarpaper
Exam period
Is decided and informed by the teacher at the compulsive planning meeting.
Re-exam
As ordinary.
Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.