Individuals often have to decide to which degree of risk they want to expose others, or how much risk to accept if their choice has an externality on third parties. One typical application is a household. We run an experiment in the German Socio-Economic Panel with two members from 494 households. Participants have a good estimate of each other’s risk preferences, even if not explicitly informed.
The goal of this study was to identify and empirically test variables that indicate how well partners in relationships know each other’s food preferences. Participants (n = 2,854) lived in the same household and were part of a large, nationally representative panel study in Germany. Each partner independently predicted the other’s preferences for several common food items. Results show that
Previous work has shown that preferences are not always stable across time, but surprisingly little is known about the reasons for this instability. I examine whether variation in people’s emotions over time predicts changes in preferences. Using a large panel data set, I ﬁnd that within-person changes in happiness, anger, and fear have substantial effects on risk attitudes and patience.
Does birth order shape people’s propensity to take risks? Evidence is mixed. We used a three-pronged approach to investigate birth-order effects on risk taking. First, we examined the propensity to take risks as measured by a self-report questionnaire administered in the German Socio-Economic Panel, one of the largest and most comprehensive household surveys. Second, we drew on data from the Basel
This article examines heterogeneity in the effect of unemployment on social participation. Whereas existing studies on this relationship essentially estimate mean effects, we use quantile regression methods to provide a broader and more complete picture. To ac-count for the potential endogeneity of job loss, we estimate quantile treatment effects (on the treated) based on entropy balancing and
A large literature documents effects of parental leave on mothers' labour market outcomes, yet we know very little about the effects on their firms and co-workers. We use unique administrative data that covers the universe of employees subject to social security and firms in Germany to address this question. We first establish some novel stylised facts in parental leave-taking
Our study analyzes the fertility effects of the 1994 genocide in Rwanda. We study the effects of violence on both the duration time to the first birth in the early post-genocide period and on the total number of post-genocide births per woman up to 15 years following the conflict. We use individual-level data from Demographic and Health Surveys, estimating survival and count data models. This
This note investigates the extent to which structural estimates of marital surplus are informative about subjective well-being and separation. We ﬁrst estimate the marital surplus using a simple matching model of the marriage market with perfectly transferable utility and heterogeneity in tastes applied to a rich German panel dataset. We then show that these estimates of the marital surplus are
This paper studies self-control in a nationally representative sample. Using the well-established Tangney scale to measure trait self-control, we ﬁnd that people’s age as well as the political and economic institutions they are exposed to have an economically meaningful impact on their level of self-control. A higher degree of self-control is, in turn, associated with better health, educational
Current research on maternal and parental leave focuses on leave take-up and employment outcomes, finding that short leaves have beneficial labor market outcomes. As the US faces below replacement fertility and an aging population, we need to consider potential unintended fertility consequences of these policies. Generous European and Australian leave policies have increased fertility and