Working Paper: NBER ID: w13309
Authors: Daniel J. Benjamin; James J. Choi; A. Joshua Strickland
Abstract: Social identities prescribe behaviors for people. We identify the marginal behavioral effect of these norms on discount rates and risk aversion by measuring how laboratory subjects' choices change when an aspect of social identity is made salient. When we make ethnic identity salient to Asian-American subjects, they make more patient choices. When we make racial identity salient to black subjects, non-immigrant blacks (but not immigrant blacks) make more patient choices. Making gender identity salient has no effect on intertemporal or risk choices.
Keywords: social identity; economic preferences; discount rates; risk aversion
JEL Codes: C91; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Asian identity norms (Z13) | Patience in financial decision-making (G11) |
| Ethnic identity salience (J15) | Patient choices (I11) |
| Racial identity salience (J15) | Patient choices of native-born Black Americans (J15) |
| Racial identity salience (J15) | Risk aversion of native-born Black Americans (J15) |
| Racial identity salience (J15) | Choices of immigrant Blacks (J15) |
| Gender identity salience (J16) | Risk preferences (D81) |
| Gender identity salience (J16) | Time preferences (D11) |