EITC, AFDC, and the Female Headship Decision

Concerns about the incentives for female headship for low-income families have focused on Aid to Families with Dependent Children (AFDC); however, the expansion of the Earned Income Tax Credit (EITC) has brought more low-income households into the tax system, subjecting them to additional marriage nonneutralities. Theoretical predictions about the correlations between the EITC and female headship are ambiguous. This paper is the first to provide empirical evidence that the EITC is correlated with female headship decisions. Using data from the Survey of Income and Program Participation, we find no significant correlations between AFDC and female headship. However, the ambiguous effect of the EITC on female headship is evident in our empirical analysis. After controlling for individual effects, we find that higher EITCs are associated with increased female headship for white women, but with decreased female headship for black women. For a sample of white women, we find that a $100 increase in the EITC would increase the probability of female headship by 0.1 percent. For a sample of black women, we find that a$100 increase in the EITC would decrease the probability of female headship by 1.4 percent, although this result is not robust.

Taxes and the poor: A microsimulation study of implicit and explicit taxes

The authors measure the cumulative burden on low-income households resulting from explicit taxes (state and federal income, and payroll taxes) and implicit taxes (reductions of program benefits as earnings rise). With monthly data from the 1990 Survey of Income and Program Participation, a simulation model calculates the benefits and taxes households receive and pay in 1990. A household's marginal tax rate is established by simulating the benefits and taxes the household would receive and pay if each member aged 15 or more received additional earnings of $10 per month. The changes in income that would result if all household members age 15 or older took a half-time, minimum-wage job are also calculated. Typical cumulative marginal tax rates on poor households are found to be about 27 percent, but this masks considerable variation across states as a result of differences in program eligibility rules, state income taxes, and state AFDC policies. The tax burdens resulting from taking a half-time minimum-wage job also vary greatly across states, and participants in AFDC and food stamps face median marginal tax rates significantly above the rates for all poor households. A consistent result, however, is that typical tax rates on the poor rarely exceed 60 percent when income changes resulting from incremental changes in monthly earnings are calculated. The authors conclude that for most poor households, tax rates are not so high as to diminish the possible effectiveness of such policies as the Earned Income Tax Credit, which try to make work more attractive than welfare.

Finding the Right Fit: A Comparison of Process Assumptions Underlying Popular Drift-Diffusion Models

Recent research makes increasing use of eye-tracking methodologies to generate and test process models. Overall, such research suggests that attention, generally indexed by fixations (gaze duration), plays a critical role in the construction of preference, although the methods employed to support this supposition differ substantially. In two studies we empirically test prototypical versions of prominent processing assumptions against one another and several base models. We find that general evidence accumulation processes provide a good fit to the data. An accumulation process that assumes leakage and temporal variability in evidence weighting (i.e. a primacy effect) fits the aggregate data, both in terms of choices and decision times, and does so across varying types of choices (e.g., charitable giving and hedonic consumption) and numbers of options well. However, when comparing models on the level of the individual, for a majority of participants simpler models capture choice data better. The theoretical and practical implications of these findings are discussed

Conscious and Unconscious Thought in Risky Choice: Testing the Capacity Principle and the Appropriate Weighting Principle of Unconscious Thought Theory

Daily we make decisions ranging from the mundane to the seemingly pivotal that shape our lives. Assuming rationality, all relevant information about one’s options should be thoroughly examined in order to make the best choice. However, some findings suggest that under specific circumstances thinking too much has disadvantageous effects on decision quality and that it might be best to let the unconscious do the busy work. In three studies we test the capacity assumption and the appropriate weighting principle of Unconscious Thought Theory using a classic risky choice paradigm and including a “deliberation with information” condition. Although we replicate an advantage for unconscious thought (UT) over “deliberation without information,” we find that “deliberation with information” equals or outperforms UT in risky choices. These results speak against the generality of the assumption that UT has a higher capacity for information integration and show that this capacity assumption does not hold in all domains. Furthermore, we show that “deliberate thought with information” leads to more differentiated knowledge compared to UT which speaks against the generality of the appropriate weighting assumption

Check (it) yourself before you wreck yourself: The benefits of online health information exposure on risk perception and intentions to protect oneself

The current study contributes to a better understanding of health information acquisition (HIA) and ongoing public policy debates about the usefulness of online health information. We distinguish between types of health knowledge (i.e., objective vs. subjective knowledge) and health information sources (information on the Internet vs. information from a Health Professional's office visit), to examine risk perceptions and health behavior outcomes (i.e., health information seeking intentions, general prevention intentions, and vaccination intentions). Using the human papillomavirus, one of the most common sexually transmitted diseases in the US among men and women aged 18–26 years, as the health context, field survey data were collected through a US online consumer panel and analyzed via structural equation modeling. We find that factually correct health information acquired by a health professional's office visit (rather than the Internet) leads to reduced risk perceptions, with potentially detrimental effects on health behavior change outcomes. Conversely, perceptions of knowledge acquired through the Internet (rather than information from a health professional's office), leads to enhanced risk perceptions with positive impacts on health behavior change outcomes. We discuss how this discrepancy can lead to a conundrum for public policy and efforts to effectively communicate health risks to individuals.Center for Risk Management and Insurance Research at the University of Texas at Austin

Moral preferences in helping dilemmas expressed by matching and forced choice

This paper asks whether moral preferences in eight medical dilemmas change as a function of how preferences are expressed, and how people choose when they are faced with two equally attractive help projects. In two large-scale studies, participants first read dilemmas where they “matched” two suggested helping projects (which varied on a single attribute) so that they became equally attractive. They did this by filling in a missing number (e.g., how many male patients must Project M save in order to be equally attractive as Project F which can save 100 female patients). Later, the same participants were asked to choose between the two equally attractive projects. We found robust evidence that people do not choose randomly, but instead tend to choose projects that help female (vs. male), children (vs. adult), innocent (vs. non-innocent), ingroup (vs. outgroup) and existing (vs. future) patients, and imply no (vs. some) risk of a harmful side-effect, even when these projects have been matched as equally attractive as, and save fewer patients than the contrasting project. We also found that some moral preferences are hidden when expressed with matching but apparent when expressed with forced choice. For example, 88–95% of the participants expressed that female and male patients are equally valuable when doing the matching task, but over 80% of them helped female patients in the choice task

Return to work after maternity leave: the role of support policies on work attitudes of women in management positions

Purpose. This study is intended to expand our knowledge on the processes through which work-family policies relate to work-family conflict as well as work-related attitudes among women in management positions returning to work after maternity leave. Design. Two-hundred and thirty-eight women in management positions who recently have returned to work after maternity leave completed a self-report questionnaire. Findings. Results show that the availability of policies was either directly or indirectly positively related to work attitudes among female managers. Also, findings show that work-family conflict partially mediates the relationship between the availability of communication and psychological support and flexible time management policies with work engagement, and policy availability moderates the relationship between work-family conflict and work engagement. Originality/value. Managers have a crucial role in conveying the value of work-family policies and in creating a culture supporting the management of work and family. By investigating the processes underlying the role of work-family policies in influencing work attitudes of women in managerial positions, this study sheds light on how the awareness of the available policies might be an important determinant of work-related well-being and organizational commitment

The Impact of Occupational Rewards on Risk Taking Among Managers

Managers often have to deal with the financial and ethical risks that companies face. Evidence from risk management research suggests a negative relationship between people\u2019s age and risk taking tendencies. Within such a framework, the present contribution examines how different perceived occupational rewards may mediate or interact with the relationship between age and risk taking of managers at the company level. Our results show that perceived rewards in terms of job security partially mediate the relationship between age and ethical risk taking, while perceived rewards related to job promotion moderate the effect of age on financial risk taking. We further discuss the role of different organizational strategies to preserve an organization\u2019s health

Asymmetric cost and benefit perceptions in willingness-to-donate decisions

Charitable giving entails the act of foregoing personal resources in order to improve the conditions of other people. In the present paper, we systematically examine two dimensions integral to donation decisions that have thus far received relatively little attention but can explain charitable behavior rather well: the perceptions of cost for the donor and benefit for the recipients. In line with current theories in judgment and decision making, we hypothesize that people weigh these dimensions subjectively and perceive them asymmetrically, consistent with prospect theory. Costs for the donor are typically perceived as losses, whereas benefits for recipients are perceived as gains. In four studies, we presented several scenarios to participants in which both donation amounts (costs) and number of lives helped (benefits) were manipulated while keeping the ratio of costs and benefits constant. Results from Studies 1 and 2 showed that willingness to help decreased as donation amounts and number of lives helped increased. Additionally, Studies 3 and 4 provide evidence for a solution to reduce the asymmetry and increase donation amounts as the number of lives at risk increases