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Of categories and attributes

May 12th, 2012 | Posted by admin in Working paper - (0 Comments)

Inna Galperin and Olav Sorenson

Research on categories has generally assumed, but has not directly examined, the relationship between the valuation of categories and of the sets of attributes that determine membership in those categories. This study uses survey data combined with an experimental design to analyze consumers’ valuation of the organic label relative to the attributes underlying that label. We find that consumers do not understand the meaning of the “organic” label but nonetheless generally prefer products with it to those with the attributes of an organic product but without the label. Categories therefore appear to have value beyond the sum of their parts. Thus categories, rather than simply being a proxy for a set of attributes, seem to represent an alternative schema for evaluating objects, people and organizations.

Olav Sorenson and Michael S. Dahl

We examine the extent to which the gender wage gap may depend on the fact that dual-earner couples jointly choose places to live and work. If couples systematically locate in places better suited for the advancement of the husband’s career than to the wife’s, those choices would then tend to depress the wages of married women relative to married men. Examining data from Denmark, our results suggest (i) that Danish couples tend to move to places that offer greater potential wage gains to the husband than to the wife, (ii) that these location choices may account for as much as 36% of the gender wage gap in Denmark, and (iii) that, ultimately, these biases appear to reflect gender roles, to a large extent inherited from the wife’ parents. We therefore demonstrate that the allocation of people to places contributes to gender inequality.

SSRN working paper