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Workers wrongly anchor their beliefs about outside options on their current wage. In particular, low-paid workers underestimate wages elsewhere. We document this anchoring bias by eliciting workers’ beliefs in a representative survey in Germany and comparing them to measures of actual outside options in linked administrative labor market data. In an equilibrium model, such anchoring can give rise to ...
In:
Quarterly Journal of Economics
139 (2024), 3, 1505-1556
| Simon Jäger, Christopher Roth, Nina Roussille, Benjamin Schoefer
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Single mothers often experience precarious financial conditions. However, it is not fully understood to what extent separation is the cause of these conditions versus being their consequence. Estimating an endogenous switching regression model based on a sample of 626 separated and 5,525 non-separated mothers drawn from the German Socio-Economic Panel (SOEP) 1984-2018, we disentangle the roles of causation ...
Berlin:
DIW Berlin,
2021,
(SOEPpapers 1147)
| Antonia Birkeneder, Christina Boll
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This paper analyses the relationship between locus of control (LOC) and the demand for supplementary health insurance. Drawing on longitudinal data from Germany, we find robust evidence that individuals having an internal LOC are more likely to take up supplementary private health insurance (SUPP). The increase in the probability to have a SUPP due to one standard deviation increase in the measure ...
Bonn:
Institute of Labor Economics (IZA),
2021,
(IZA DP No. 14633)
| Eric Bonsang, Joan Costa-Font, Sonja C. de New
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This paper examines the relationship between locus of control (LOC) and the demand for supplementary health insurance (SUPP). Drawing on longitudinal data from Germany, we document robust evidence that individuals internal LOC increases the take up of supplementary private health insurance (SUPP). We find that the effect of one standard deviation increase in the measure of internal LOC on the probability ...
In:
Journal of Economic Behavior & Organization
204 (2022), 476-489
| Eric Bonsang, Joan Costa-Font
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In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. By focusing on the short-run effects of the German Minimum Wage Reform, I estimate its impact on employment. Using a difference-in-differences framework, I exploit variation in the regional treatment intensity, assuming that the stronger a minimum wage ‘bites’ into ...
2021,
| Silvio Ceron
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Watching television is the most time-consuming human activity besides work but its role for individual well-being is unclear. Negative consequences portrayed in the literature raise the question whether this popular pastime constitutes an economic good or bad, and hence serves as a prime example of irrational behavior reducing individual health and happiness. Using rich panel data, we are the first ...
Berlin:
DIW Berlin,
2021,
(SOEPpapers 1148)
| Adrian Chadi, Manuel Hoffmann
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We propose a broadly applicable empirical approach to classify individuals as time-consistent versus native or sophisticated regarding their self-control limitations. Operationalizing our approach based on nationally representative data reveals that self-control problems are pervasive and that most people are at least partly aware of their limited self-control. Compared to naifs, sophisticates have ...
Berlin:
DIW Berlin,
2021,
(SOEPpapers 1144)
| Deborah A. Cobb-Clark, Sarah Dahmann, Daniel A. Kamhöfer, Hannah Schildberg-Hörisch
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Due to the pandemic-induced economic crisis, self-employed individuals are currently suffering considerable income losses. The self-employed and the members in their households usually form an economic unit. As a consequence, the income cuts not only affect the self-employed themselves but also the rest of their household. We used the German Socio-Economic Panel (SOEP) to calculate how much income ...
In:
Review of Economics of the Household
21 (2023), 1, 37-57
| Stefan Schneck
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Numerous countries require teachers to assign comportment grades rating students’ social and work behavior in the classroom. However, the impact of such policies on student outcomes remains unknown. We exploit the staggered introduction of comportment grading across German federal states to estimate its causal effect on students’ school-to-work transitions as well as cognitive and non-cognitive abilities. ...
Munich:
CESifo,
2021,
(CESifo Working Paper No. 9275)
| Florian Schoner, Lukas Mergele, Larissa Zierow
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Purpose: This study investigates the relationship between emotional exhaustion and entrepreneurial exit, particularly how this relationship might be invigorated by two critical psychological factors, namely cognitive well-being (CWB) and affective well-being (AWB). Design/methodology/approach: Binary logistic regression analysis was employed on a longitudinal data set of 997 self-employed individuals ...
In:
Journal of Small Business and Enterprise Development
29 (2022), 2, 203-220
| Subhan Shahid, Yasir Mansoor Kundi