@article{BurauelCaliendoGrabkaetal.2020, author = {Burauel, Patrick F. and Caliendo, Marco and Grabka, Markus M. and Obst, Cosima and Preuss, Malte and Schr{\"o}der, Carsten and Shupe, Cortnie}, title = {The impact of the German minimum wage on individual wages and monthly warnings}, series = {Jahrb{\"u}cher f{\"u}r National{\"o}konomie und Statistik = Journal of economics and statistics}, volume = {240}, journal = {Jahrb{\"u}cher f{\"u}r National{\"o}konomie und Statistik = Journal of economics and statistics}, number = {2-3}, publisher = {De Gruyter}, address = {Berlin}, issn = {0021-4027}, doi = {10.1515/jbnst-2018-0077}, pages = {201 -- 231}, year = {2020}, abstract = {This paper evaluates the short-run impact of the introduction of a statutory minimum wage in Germany on the hourly wages and monthly earnings of workers targeted by the reform. We first provide detailed descriptive evidence of changes to the wage structure in particular at the bottom of the distribution and distinguish between trends for regularly employed and marginally employed workers. In the causal analysis, we then employ a differential trend adjusted difference-in-differences (DTADD) strategy to identify the extent to which these changes in wages and earnings can be attributed to the minimum wage introduction. We find that the minimum wage introduction can account for hourly wage growth in the order of roughly 6.5 \% or (sic)0.45/hour and an increase in monthly earnings of 6.6 \% or (sic)53/month. Despite finding wage growth at the bottom of the distribution, the paper documents widespread non-compliance with the mandated wage floor of (sic)8.50/hour.}, language = {en} } @article{CaliendoCobbClarkObstetal.2022, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Obst, Cosima and Seitz, Helke and Uhlendorff, Arne}, title = {Locus of control and investment in training}, series = {Journal of human resources}, volume = {57}, journal = {Journal of human resources}, number = {4}, publisher = {University of Wisconsin Press}, address = {Madison}, issn = {0022-166X}, doi = {10.3368/jhr.57.4.0318-9377R2}, pages = {1311 -- 1349}, year = {2022}, abstract = {We extend standard models of work-related training by explicitly incorporating workers' locus of control into the investment decision through the returns they expect. Our model predicts that higher internal control results in increased take-up of general, but not specific, training. This prediction is empirically validated using data from the German Socioeconomic Panel (SOEP). We provide empirical evidence that locus of control influences participation in training through its effect on workers' expectations about future wage increases rather than actual wage increases. Our results provide an important explanation for underinvestment in training and suggest that those with an external sense of control may require additional training support.}, language = {en} } @article{CaliendoCobbClarkObstetal.2022, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Obst, Cosima and Uhlendorff, Arne}, title = {Risk preferences and training investments}, series = {Journal of economic behavior \& organization}, volume = {205}, journal = {Journal of economic behavior \& organization}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0167-2681}, doi = {10.1016/j.jebo.2022.11.024}, pages = {668 -- 686}, year = {2022}, abstract = {We analyze workers' risk preferences and training investments. Our conceptual framework differentiates between the investment risk and insurance mechanisms underpinning training decisions. Investment risk leads risk-averse workers to train less; they undertake more training if it insures them against future losses. We use the German Socio-Economic Panel (SOEP) to demonstrate that risk affinity is associated with more training, implying that, on average, investment risks dominate the insurance benefits of training. Crucially, this relationship is evident only for general training; there is no relationship between risk attitudes and specific training. Thus, consistent with our conceptual framework, risk preferences matter more when skills are transferable - and workers have a vested interest in training outcomes - than when they are not. Finally, we provide evidence that the insurance benefits of training are concentrated among workers with uncertain employment relationships or limited access to public insurance schemes.}, language = {en} } @techreport{CaliendoCobbClarkObstetal.2020, type = {Working Paper}, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Obst, Cosima and Uhlendorff, Arne}, title = {Risk Preferences and Training Investments}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {23}, issn = {2628-653X}, doi = {10.25932/publishup-48092}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-480927}, pages = {35}, year = {2020}, abstract = {We analyze workers' risk preferences and training investments. Our conceptual framework differentiates between the investment risk and insurance mechanisms underpinning training decisions. Investment risk leads risk-averse workers to train less; they undertake more training if it insures them against future losses. We use the German Socio-Economic Panel (SOEP) to demonstrate that risk affinity is associated with more training, implying that, on average, investment risks dominate the insurance benefits of training. Crucially, this relationship is evident only for general training; there is no relationship between risk attitudes and specific training. Thus, as expected, risk preferences matter more when skills are transferable - and workers have a vested interest in training outcomes - than when they are not. Finally, we provide evidence that the insurance benefits of training are concentrated among workers with uncertain employment relationships or limited access to public insurance schemes.}, language = {en} } @phdthesis{Obst2022, author = {Obst, Cosima}, title = {Essays in labor economics}, doi = {10.25932/publishup-56379}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-563794}, school = {Universit{\"a}t Potsdam}, pages = {272}, year = {2022}, abstract = {This thesis offers insights into the process of workers decisions to invest into work-related training. Specifically, the role of personality traits and attitudes is analysed. The aim is to understand whether such traits contribute to an under-investment into training. Importantly, general and specific training are distinguished, where the worker's productivity increases in many firms in the former and only in the current firm in the latter case. Additionally, this thesis contributes to the evaluation of the German minimum wage introduction in 2015, identifying causal effects on wages and working hours. Chapters two to four focus on the work-related training decision. First, individuals with an internal locus of control see a direct link between their own actions and their labor market success, while external individuals connect their outcomes to fate, luck, and other people. Consequently, it can be expected that internal individuals expect higher returns to training and are, thus, more willing to participate. The results reflect this hypothesis with internal individuals being more likely to participate in general (but not specific) training. Second, training can be viewed either as a risky investment or as an insurance against negative labor income shocks. In both cases, risk attitudes are expected to play a role in the decision process. The data point towards risk seeking individuals being more likely to participate in general (but not specific) training, and thus, training being viewed on average as a risky investment. Third, job satisfaction influences behavioral decisions in the job context, where dissatisfied workers may react by neglecting their duties, improving the situation or quitting the job. In the first case, dissatisfied workers are expected to invest less in training, while the latter two reactions could lead to higher participation rates amongst dissatisfied workers. The results suggest that on average dissatisfied workers are less likely to invest into training than satisfied workers. However, closer inspections of quit intentions and different sources of dissatisfaction paint less clear pictures, pointing towards the complexity of the job satisfaction construct. Chapters five and six evaluate the introduction of the minimum wage in Germany in 2015. First, in 2015 an increase in the growth of hourly wages can be identified as a causal effect of the minimum wage introduction. However, at the same time, a reduction in the weekly working hours results in an overall unchanged growth in monthly earnings. When considering the effects in 2016, the decrease in weekly working hours disappears, resulting in a significant increase in the growth of monthly earnings due to the minimum wage. Importantly, the analysis suggests that the increase in hourly wages was not sufficient to ensure all workers receiving the minimum wage. This points to non-compliance being an issue in the first years after the minimum wage introduction.}, language = {en} } @techreport{Obst2022, type = {Working Paper}, author = {Obst, Cosima}, title = {Job Satisfaction and Training Investments}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {47}, issn = {2628-653X}, doi = {10.25932/publishup-54912}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-549124}, pages = {46}, year = {2022}, abstract = {Job satisfaction has been found to impact behavioral choices at the workplace. Since levels of satisfaction are not guaranteed to remain high, understanding the consequences of job dissatisfaction is essential. Hence, I analyze the relationship between a worker's job satisfaction and her training investments. Based on my theoretical model, I expect a U-shaped relationship if dissatisfied workers attempt to improve the situation or plan to quit. In contrast, there is an overall positive relationship if dissatisfied workers neglect their duties. Using logit regressions with the Household, Income and Labour Dynamics in Australia (HILDA) survey I find tentative evidence that there is on average an overall positive relationship with a 1 standard deviation increase in job satisfaction being associated with a 1.5\% increased likelihood of participating in training. A closer inspection of the reasons for training as well as quit intentions reveals some hints of a U-shaped relationship. My results highlight the importance of considering the source of dissatisfaction as there are heterogeneous effects along different job satisfaction facets.}, language = {en} }