Events

Advanced Economic Seminars 164:Does the effect of confidence depend on social identity? An experimental study on India’s caste system

Publisher: Time:2016-12-05 15:46:00

Topic: Does the effect of confidence depend on social identity? An experimental study on India’s caste system

Lecturer:WANG Qiqi, School of Economics, Shandong University

Time: 03:30pm-05:00pm, Dec.8(Thur),  2016

Venue: B423, Zhixin Building

Abstract: We study the effect of confidence in an experimental Indian labor market where employers and workers come from different castes. Employers evaluate the productivity and set the wage of workers who perform real-effort tasks. We find that while all employers are strongly influenced by worker confidence, high caste employers place more weight on low caste workers’ confidence than on high caste workers’ confidence. On the other hand, low caste employers equally weigh low and high caste workers’ confidence. The effect of confidence hence depends on the identity of workers and employers. We also show that as employers under-evaluate low caste workers’ other labor market signals, confidence helps attenuate discriminatory wage gaps between high and low caste workers.