Relative Income Position and Performance: An Empirical Panel Analysis

Many studies have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. However, behavioral evidence is rare. This paper provides an empirical analysis on how individuals’ relative income position affects their performance. Using a unique data set for 1114 soccer players over a period of eight seasons (2833 observations), our analysis suggests that the larger the income differences within a team, the worse the performance of the soccer players is. The more the players are integrated in a particular social environment (their team), the more evident this negative effect is.Relative Income, Positional Concerns, Envy, Performance, Social Integration

The Power of Positional Concerns: A Panel Analysis

Many studies have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. However, behavioral evidence is rare. This paper provides an empirical analysis on how individuals’ relative income position affects their performance. Using a unique data set for 1040 soccer players over a period of eight seasons, our analysis suggests that if a player’s salary is below the average and this difference increases, his performance worsens and the productivity decreasing effects of positional concerns are stronger. Moreover, the larger the income differences within a team, the stronger positional concern effects are observable. We also find that the more the players are integrated in a particular social environment (their team), the more evident a relative income effect is. Finally, we find that positional effects are stronger among high performing teams.Relative income, positional concerns, envy, performance, social integration

Transforming Community College Education at The City University of New York

The City University of New York (CUNY) developed and implemented two evidence-based, educational initiatives at its community colleges. Accelerated Study in Associate Programs (ASAP), on six campuses, helped 55 percent of students who enter with one or two developmental needs earn an associate degree within three years. This compares with 20 percent for non-ASAP students who needed remediation. An external random assignment study by MDRC found that ASAP increased credits earned, completion of developmental coursework, and first-to-second semester retention. An independent study out of Columbia University Teachers College estimated that despite higher initial expenses, ASAP’s higher graduation rate costs the university $6,500 less per three-year graduate. The second innovation, CUNY’s New Community College (NCC), opened with 300 students in Fall 2012. It offers A.A. and A.S. degrees for transfer to baccalaureate programs, plus occupational A.A.S. degrees. Using a curriculum organized around problem-solving for New York City’s future, it integrates developmental and credit coursework, field experiences, and classroom learning in a structured and supportive environment. Other components include full-time study in the first year, limited majors, and a multidisciplinary faculty-staff instructional team. Early results include a 92 percent first-to-second-semester retention rate for Spring 2013