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Simply how much can we trust the вЂquit jobвЂ™ and вЂbreak-upвЂ™ results? In the plus side:
- This really is a result that is nearly-experimental the coin toss as a kind of вЂintention to treatвЂ™).
- The specification is therefore easy and clear.
- The outcomes are statistically significant and pass some robustness checks.
- the hallmark of the outcome (good) is plausible on its face, being explained by status-quo bias and risk-aversion. But, the magnitudes are unexpectedly big, and thus much more likely than maybe perhaps maybe not an opportunity overestimate.
- Levitt searches for indications of some types of bias ( ag e.g. individuals being inclined to overstate their pleasure if they obeyed the coin flip, or those whom benefitted through the change being almost certainly going to fill in follow-up studies) and finds small proof for them. (more…)