With or Without Siblings: Sorting into Competition in Experimental Chinese Labor Market
37 Pages Posted: 8 Jan 2014
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
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