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

37 Pages Posted: 8 Jan 2014

See all articles by Fanzheng Yang

Fanzheng Yang

China Center for Human Capital and Labor Market Research

Li Yu

Central University of Finance and Economics (CUFE)

Date Written: October 7, 2013

Abstract

We examine whether Chinese only child and child with siblings, having similar ability as well as similar risk 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 a competitive tournament incentive scheme. We find a significant differential sorting behavior into tournament between only child and child with siblings, even after controlling for gender, ability, risk attitude, social preference and other individual characteristics. Only child tends to underestimate her winning chances and is shy away from competition. But as only child get more confident, she will more embrace competition than her comparatively equivalent counterpart.

Keywords: Only child; Child with siblings; Competition; Self-assessment

JEL Classification: J24; D82; M12

Suggested Citation

Yang, Fanzheng and Yu, Li, With or Without Siblings: Sorting into Competition in Experimental Chinese Labor Market (October 7, 2013). Available at SSRN: https://ssrn.com/abstract=2376010 or http://dx.doi.org/10.2139/ssrn.2376010

Fanzheng Yang

China Center for Human Capital and Labor Market Research ( email )

Room 609 Academic Hall
39 South College Road
Beijing, 100081
China

Li Yu (Contact Author)

Central University of Finance and Economics (CUFE) ( email )

39 South College Road
Haidian District
Beijing, Beijing 100081
China

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