Publications Based on SOEP Data: SOEPlit

Migrant Poverty and Social Capital: The Impact of Intra- and Interethnic Contacts

Previous research on immigrant economic incorporation has predominantly focused on dimensions of labor market access, while income poverty and its determinants have not yet received as much attention. The present study sets out to address this gap, and it has a particular focus on the relative utility of intra- and interethnic contacts. Applying social capital considerations, we investigate to what ...

Immigrant Occupational Composition and the Earnings of Immigrants and Natives in Germany: Sorting or Devaluation?

In this article, the influence of immigrant occupational composition on the earnings of immigrants and natives in Germany is examined. Using data from the German Socio-Economic Panel Study and the German Microcensus, several relevant concepts are tested. The notion of quality sorting states that the differences in wages that are associated with the immigrant share within occupations are due only to ...

Labour Market Entry of Young People Analysed by a Double Threshold Model

Job Insecurity: Differential Effects of Subjective and Objective Measures on Life Satisfaction Trajectories of Workers Aged 27–30 in Germany

Job insecurity has become increasingly evident in European countries in recent years. In Germany, legislation has increased insecurity through erosion of the standard employment relationship. Fixed-term contracts are central to definitions of insecurity based on atypical or precarious work but there is still limited understanding of what creates insecurity and how it affects workers. Drawing on Bourdieu’s ...

Income Inequality Developments in the Great Recession

Changing Identity: Retiring from Unemployment

Using German panel data, we show that unemployed people are, on average, less satisfied with their life than employed people, but they report a substantial increase in their life satisfaction upon retirement. We interpret this finding using identity theory. Retirement raises the identity utility of the unemployed because it changes the social norms they are supposed to adhere to. The social norm for ...

Looking Back in Anger? Retirement and Unemployment Scarring

Previous studies find that past unemployment reduces life satisfaction even after reemployment for non-monetary reasons (unemployment scarring). It is not clear, however, whether this scarring is only caused by employment-related factors, such as worsened working conditions, or increased future uncertainty as regards income and employment. Using German panel data, we identify non-employment-related ...

Income in Jeopardy: How Losing Employment Affects the Willingness to Take Risks

Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing one’s job reduces the willingness to take risks. This effect strengthens in previous hourly wage, begins to manifest itself as soon as an employee perceives the threat of job loss and is ...

Locus of Control and Performance Appraisal

This work contributes to the literature demonstrating an important role for psychological traits in labor market decisions. We show that West German workers with an internal locus of control sort into jobs with performance appraisals. Appraisals provide workers who believe they control their environment a tool to demonstrate their value and achieve their goals. We confirm that workers who are risk ...

Does Profit Sharing Reduce Conflict with the Boss? Evidence from Germany