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Dr. Hensel introduced his two arms of research agenda related to behavioral economics. One is the motives of political activists, and the other being the information and labor markets in developing countries. For political activity studies, he is particularly interested in strategic interactions, the hybrid between traditional economics and other motives in the behavioral literature, and the effect of voice on political activism.


For information and labor market research in developing countries, in addition to the traditional development story, he focuses on the impacts of incomplete information on labor market frictions, belief formation, and signal interpretation. He also studies the success of workers and workplace and hiring outcomes relating to socioemotional skills. In addition, he explores the implication of expectations on worker turnover, specifically about how expectations about job satisfaction compare to job seekers¡¯ realized job satisfaction, to ultimately make statements about the rationality of these expectations. The unifying themes in Dr. Hensel¡¯s research are field experiments, limited information, and belief formation.


He first talked about his research on political activists with respect to canvassing. The motivation of the research is that people¡¯s beliefs about others¡¯ canvassing intentions are often incorrect. Hence, this research studies the effect of providing true information on the strategic interactions between party members¡¯ canvassing efforts. Dr Hensel¡¯s research shows that when given information on the competing party¡¯s increased campaigning effort, the treatment group reduces canvassing participation towards the election.They observe that the increased competition lowered party supporters¡¯ political self-efficacy, leading to subdued participation.


Using an experiment with the sample population, they found that when given information on own party¡¯s increased campaigning effort, the treatment group also reduces canvassing effort towards the election. They discovered huge heterogeneity among the treated, such that members with weak ties to the party are more likely to free ride on other member¡¯s campaigning effort.


In another study, Dr. Hensel explored the different strategic interactions across movements. His research found that when treated with own party¡¯s campaigning effort, left-wing individuals exhibit strategic complementarity, whereas right-wing individuals exhibit strategic substitutability. However, this research has yet to reach a conclusion about the underlying mechanisms of this striking difference. It could be driven by differences at the individual level, movement level, or society level.


As a result, Dr. Hensel¡¯s next step on political movement research is to provide evidence on the motives. Open text response shows that more than 40% indicates no change in efforts, while more than 30% claims to adjust efforts according to strategic substitutability. Conditioning on strategic substitutability, a structured response shows that 80% were due to free-riding. Conditioning on strategic complementarity, the result was less uniform, with concerns such as social image, reciprocity, increasing returns, enjoyment, and other motivations. Dr. Hensel suggested that mechanism experiments might be difficult to separate the individual effects, which calls for theoretical models with heterogeneous agents and motives.


For labor market in developing countries, Dr. Hensel emphasizes the importance of information provision. Dr. Hensel outlined the research project where he and coauthors helped workers in South Africa to learn about their comparative advantage in skills. They offered assessments on six skills and provided extensive information afterwards about their performance and how to use it in job search. This experiment found that the treated group went on to seek more jobs matched with their comparative advantage in skills and had higher earnings after 3 months. The results also exhibit some heterogeneity among the sample. The result of the assessment for those already have correct information about themselves was minimal. In other words, the treatment was only effective for those with wrong prior information.


Dr. Hensel discussed with other professors regarding how to reach an overarching theory to reconcile the differences in political activism and the possibility of using priming to identify underlying mechanisms.


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