@article{CaliendoCobbClarkSilvaGoncalvesetal.2024, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Silva-Goncalves, Juliana and Uhlendorff, Arne}, title = {Locus of control and the preference for agency}, series = {European economic review}, volume = {165}, journal = {European economic review}, number = {104737}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0014-2921}, doi = {10.1016/j.euroecorev.2024.104737}, pages = {24}, year = {2024}, abstract = {We conduct a laboratory experiment to study how locus of control operates through people's preferences and beliefs to influence their decisions. Using the principal-agent setting of the delegation game, we test four key channels that conceptually link locus of control to decision-making: (i) preference for agency, (ii) optimism and (iii) confidence regarding the return to effort, and (iv) illusion of control. Knowing the return and cost of stated effort, principals either retain or delegate the right to make an investment decision that generates payoffs for themselves and their agents. Extending the game to the context in which the return to stated effort is unknown allows us to explicitly study the relationship between locus of control and beliefs about the return to effort. We find that internal locus of control is linked to the preference for agency, an effect that is driven by women. We find no evidence that locus of control influences optimism and confidence about the return to stated effort, or that it operates through an illusion of control.}, language = {en} } @techreport{CaliendoCobbClarkSilvaGoncalvesetal.2023, type = {Working Paper}, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Silva-Goncalves, Juliana and Uhlendorff, Arne}, title = {Locus of control and the preference for agency}, series = {IZA discussion paper}, volume = {No. 16061}, journal = {IZA discussion paper}, publisher = {Elsevier}, address = {Amsterdam}, issn = {2365-9793}, doi = {10.2139/ssrn.4416820}, pages = {49}, year = {2023}, abstract = {We conduct a laboratory experiment to study how locus of control operates through people's preferences and beliefs to influence their decisions. Using the principal-agent setting of the delegation game, we test four key channels that conceptually link locus of control to decision-making: (i) preference for agency; (ii) optimism and (iii) confidence regarding the return to effort; and (iv) illusion of control. Knowing the return and cost of stated effort, principals either retain or delegate the right to make an investment decision that generates payoffs for themselves and their agents. Extending the game to the context in which the return to stated effort is unknown allows us to explicitly study the relationship between locus of control and beliefs about the return to effort. We find that internal locus of control is linked to the preference for agency, an effect that is driven by women. We find no evidence that locus of control influences optimism and confidence about the return to stated effort, or that it operates through an illusion of control.}, language = {en} } @article{CaliendoKritikosStier2023, author = {Caliendo, Marco and Kritikos, Alexander and Stier, Claudia}, title = {The influence of start-up motivation on entrepreneurial performance}, series = {Small business economics}, volume = {61}, journal = {Small business economics}, publisher = {Springer Science+Business Media}, address = {Dordrecht}, issn = {0921-898X}, doi = {10.1007/s11187-022-00722-6}, pages = {869 -- 889}, year = {2023}, abstract = {Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, and expansion and innovation activities for up to 40 months after business formation. Using the self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show - based on a unique dataset of German start-ups from unemployment and non-unemployment - that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth-oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.}, language = {en} } @article{CaliendoTuebbicke2021, author = {Caliendo, Marco and T{\"u}bbicke, Stefan}, title = {Design and effectiveness of start-up subsidies}, series = {Economic analysis and policy}, volume = {70}, journal = {Economic analysis and policy}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0313-5926}, doi = {10.1016/j.eap.2021.02.015}, pages = {333 -- 340}, year = {2021}, abstract = {While a growing body of literature finds positive impacts of Start-Up Subsidies (SUS) on labor market outcomes of participants, little is known about how the design of these programs shapes their effectiveness and hence how to improve policy. As experimental variation in program design is unavailable, we exploit the 2011 reform of the current German SUS program for the unemployed which strengthened caseworkers' discretionary power, increased entry requirements and reduced monetary support. We estimate the impact of the reform on the program's effectiveness using samples of participants and non-participants from before and after the reform. To control for time-constant unobserved heterogeneity as well as differential selection patterns based on observable characteristics over time, we combine Difference-in-Differences with inverse probability weighting using covariate balancing propensity scores. Holding participants' observed characteristics as well as macroeconomic conditions constant, the results suggest that the reform was successful in raising employment effects on average. As these findings may be contaminated by changes in selection patterns based on unobserved characteristics, we assess our results using simulation-based sensitivity analyses and find that our estimates are highly robust to changes in unobserved characteristics. Hence, the reform most likely had a positive impact on the effectiveness of the program, suggesting that increasing entry requirements and reducing support increased the program's impacts while reducing the cost per participant. (C) 2021 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.}, language = {en} } @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} } @techreport{SchroederGoeblerGrabkaetal.2020, author = {Schr{\"o}der, Carsten and G{\"o}bler, Konstantin and Grabka, Markus M. and Kolb, Chris and Shupe, Cortnie and Caliendo, Marco and T{\"u}bbicke, Stefan and Priem, Maximilian}, title = {Auswirkungen des gesetzlichen Mindestlohns auf Haushaltseinkommen, Konsum- und Sparverhalten}, publisher = {Deutsche Institut f{\"u}r Wirtschaftsforschung}, address = {Berlin}, pages = {1 -- 85}, year = {2020}, language = {de} } @article{CaliendoGraeberKritikosetal.2022, author = {Caliendo, Marco and Graeber, Daniel and Kritikos, Alexander and Seebauer, Johannes}, title = {Pandemic depression}, series = {Entrepreneurship theory and practice}, volume = {47}, journal = {Entrepreneurship theory and practice}, number = {3}, publisher = {SAGE Publishing}, address = {Thousand Oaks}, issn = {1042-2587}, doi = {10.1177/10422587221102106}, pages = {788 -- 830}, year = {2022}, abstract = {We investigate the effect of the COVID-19 pandemic on self-employed people's mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis.}, language = {en} } @article{CaliendoFossenKritikos2021, author = {Caliendo, Marco and Fossen, Frank M. and Kritikos, Alexander}, title = {Personality characteristics and the decision to hire}, series = {Industrial and corporate change}, volume = {31}, journal = {Industrial and corporate change}, number = {3}, publisher = {Oxford University Press}, address = {Oxford}, issn = {0960-6491}, doi = {10.1093/icc/dtab062}, pages = {736 -- 761}, year = {2021}, abstract = {As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to understand whether the personality of entrepreneurs drives the first hiring in their firms. Using the German Socio-Economic Panel (SOEP), we analyze to what extent personality traits influence the probability of becoming an employer. The results indicate that personality matters. Risk tolerance unfolds the strongest influence on hiring, shortening the time until entrepreneurs hire their first employee; the effect size of a one-standard-deviation increase in risk tolerance is similar to that of having a university degree. Moreover, individuals who are more open to experience, more conscientious, and more trustful are more likely to hire upon establishing their business.}, 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{CaliendoRodriguez2023, author = {Caliendo, Marco and Rodr{\´i}guez, Daniel}, title = {Divergent thinking and post-launch entrepreneurial outcomes}, series = {Small business economics}, volume = {57}, journal = {Small business economics}, publisher = {Springer Science + Business Media B.V.}, address = {Dordrecht}, issn = {0921-898X}, doi = {10.1007/s11187-023-00828-5}, pages = {31}, year = {2023}, abstract = {Divergent thinking is the ability to produce numerous and diverse responses to questions or tasks, and it is used as a predictor of creative achievement. It plays a significant role in the business organization's innovation process and the recognition of new business opportunities. Drawing upon the cumulative process model of creativity in entrepreneurship, we hypothesize that divergent thinking has a lasting effect on post-launch entrepreneurial outcomes related to innovation and growth, but that this relation might not always be linear. Additionally, we hypothesize that domain-specific experience has a moderating role in this relation. We test our hypotheses based on a representative longitudinal sample of 457 German business founders, which we observe up until 40 months after start-up. We find strong relative effects for innovation and growth outcomes. For survival, we find conclusive evidence for non-linearities in the effects of divergent thinking. Additionally, we show that such effects are moderated by the type of domain-specific experience that entrepreneurs gathered pre-launch, as it shapes the individual's ideational abilities to fit into more sophisticated strategies regarding entrepreneurial creative achievement. Our findings have relevant policy implications in characterizing and identifying business start-ups with growth and innovation potential, allowing a more efficient allocation of public and private funds.}, language = {en} } @article{CaliendoFedoretsPreussetal.2022, author = {Caliendo, Marco and Fedorets, Alexandra and Preuss, Malte and Schr{\"o}der, Carsten and Wittbrodt, Linda}, title = {The short- and medium-term distributional effects of the German minimum wage reform}, series = {Empirical economics}, volume = {64}, journal = {Empirical economics}, publisher = {Springer}, address = {Berlin}, issn = {0377-7332}, doi = {10.1007/s00181-022-02288-4}, pages = {1149 -- 1175}, year = {2022}, abstract = {This study quantifies the distributional effects of the minimum wage introduced in Germany in 2015. Using detailed Socio-Economic Panel survey data, we assess changes in the hourly wages, working hours, and monthly wages of employees who were entitled to be paid the minimum wage. We employ a difference-in-differences analysis, exploiting regional variation in the "bite" of the minimum wage. At the bottom of the hourly wage distribution, we document wage growth of 9\% in the short term and 21\% in the medium term. At the same time, we find a reduction in working hours, such that the increase in hourly wages does not lead to a subortionate increase in monthly wages. We conclude that working hours adjustments play an important role in the distributional effects of minimum wages.}, language = {en} } @article{CaliendoKuennWeissenberger2020, author = {Caliendo, Marco and K{\"u}nn, Steffen and Weissenberger, Martin}, title = {Catching up or lagging behind?}, series = {Research policy : policy, management and economic studies of science, technology and innovation}, volume = {49}, journal = {Research policy : policy, management and economic studies of science, technology and innovation}, number = {10}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0048-7333}, doi = {10.1016/j.respol.2020.104053}, pages = {14}, year = {2020}, abstract = {From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix.}, language = {en} } @article{CaliendoMahlstedtvandenBergetal.2022, author = {Caliendo, Marco and Mahlstedt, Robert and van den Berg, Gerard J. and Vikstr{\"o}m, Johan}, title = {Side effects of labor market policies}, series = {The Scandinavian journal of economics}, volume = {125}, journal = {The Scandinavian journal of economics}, number = {2}, publisher = {Wiley-Blackwell}, address = {Oxford}, issn = {0347-0520}, doi = {10.1111/sjoe.12514}, pages = {339 -- 375}, year = {2022}, abstract = {Labor market policies, such as training and sanctions, are commonly used to bring workers back to work. By analogy to medical treatments, exposure to these tools can have side effects. We study the effects on health using individual-level population registers on labor market outcomes, drug prescriptions, and sickness absence, comparing outcomes before and after exposure to training and sanctions. Training improves cardiovascular and mental health, and lowers sickness absence. This is likely to be the result of the instantaneous features of participation, such as the adoption of a more rigorous daily routine, rather than improved employment prospects. Benefits sanctions cause a short-run deterioration of mental health.}, 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} } @article{Caliendo2020, author = {Caliendo, Marco}, title = {F{\"u}nf Jahre Mindestlohn}, series = {ifo Schnelldienst}, volume = {73}, journal = {ifo Schnelldienst}, number = {4}, publisher = {Institut f{\"u}r Wirtschaftsforschung}, address = {M{\"u}nchen}, issn = {0018-974X}, pages = {23 -- 28}, year = {2020}, abstract = {Die Einf{\"u}hrung des gesetzlichen Mindestlohns zum 1. Januar 2015 war nach der Agenda 2010 die bedeutendste Arbeitsmarktreform der letzten 20 Jahre. Durch das relativ hohe Eingriffsniveau - etwa 4 Millionen oder 11\% aller Erwerbst{\"a}tigen verdienten vor der Einf{\"u}hrung weniger als die neue Bruttolohnuntergrenze von 8,50 Euro pro Stunde - und die nahezu umfassende G{\"u}ltigkeit, waren Hoffnungen und Bef{\"u}rchtungen gleichermaßen groß und viele Fragen zu den Wirkungen offen. Heute, f{\"u}nf Jahre nach der Einf{\"u}hrung und basierend auf zahlreichen, breit angelegten Evaluationsstudien, ist es Zeit f{\"u}r eine Zwischenbilanz. Die L{\"o}hne im unteren Bereich sind gestiegen, ohne dass es zu einem gr{\"o}ßeren Abbau an Besch{\"a}ftigung gekommen ist. Gleichzeitig hat der Mindestlohn aber nicht die Zahl der Transferbezieher verringert. Auch das Armutsrisiko hat nicht abgenommen. Der Mindestlohn ist in vielerlei Hinsicht nicht existenzsichernd und wird auch nicht vollumf{\"a}nglich durchgesetzt. Insofern wurde f{\"u}nf Jahre nach der Einf{\"u}hrung zwar einiges erreicht, wichtige Ziele aber auch verfehlt. Die Politik ist gefordert.}, language = {de} } @article{CaliendoTuebbicke2020, author = {Caliendo, Marco and T{\"u}bbicke, Stefan}, title = {Do start-up subsidies for the unemployed affect participants' well-being?}, series = {Evaluation review}, volume = {46}, journal = {Evaluation review}, number = {5}, publisher = {Sage Publications}, address = {Thousand Oaks}, issn = {1552-3926}, doi = {10.1177/0193841X20927237}, pages = {517 -- 554}, year = {2020}, abstract = {Background: The literature on start-up subsidies (SUS) for the unemployed finds positive effects on objective outcome measures such as employment or income. However, little is known about effects on subjective well-being of participants. Knowledge about this is especially important because subsidizing the transition into self-employment may have unintended adverse effects on participants' well-being due to its risky nature and lower social security protection, especially in the long run. Objective: We study the long-term effects of SUS on subjective outcome indicators of well-being, as measured by the participants' satisfaction in different domains. This extends previous analyses of the current German SUS program ("Gr{\"u}ndungszuschuss") that focused on objective outcomes—such as employment and income—and allows us to make a more complete judgment about the overall effects of SUS at the individual level. Research design: Having access to linked administrative-survey data providing us with rich information on pretreatment characteristics, we base our analysis on the conditional independence assumption and use propensity score matching to estimate causal effects within the potential outcomes framework. We perform several sensitivity analyses to inspect the robustness of our findings. Results: We find long-term positive effects on job satisfaction but negative effects on individuals' satisfaction with their social security situation. Supplementary findings suggest that the negative effect on satisfaction with social security may be driven by negative effects on unemployment and retirement insurance coverage. Our heterogeneity analysis reveals substantial variation in effects across gender, age groups, and skill levels. Estimates are highly robust.}, language = {en} } @article{CaliendoWittbrodt2022, author = {Caliendo, Marco and Wittbrodt, Linda}, title = {Did the minimum wage reduce the gender wage gap in Germany?}, series = {Labour economics}, volume = {78}, journal = {Labour economics}, publisher = {Elsevier}, address = {Amsterdam}, issn = {09275371}, doi = {10.1016/j.labeco.2022.102228}, pages = {11}, year = {2022}, abstract = {In many countries, women are over-represented among low-wage employees, which is why a wage floor could benefit them particularly. Following this notion, we analyse the impact of the German minimum wage introduction in 2015 on the gender wage gap. Germany poses an interesting case study in this context, since it has a rather high gender wage gap and set the minimum wage at a relatively high level, affecting more than four million employees. Based on individual data from the Structure of Earnings Survey, containing information for over one million employees working in 60,000 firms, we use a difference-in-difference framework that exploits regional differences in the bite of the minimum wage. We find a significant negative effect of the minimum wage on the regional gender wage gap. Between 2014 and 2018, the gap at the 10th percentile of the wage distribution was reduced by 4.6 percentage points (or 32\%) in regions that were strongly affected by the minimum wage compared to less affected regions. For the gap at the 25th percentile, the effect still amounted to 18\%, while for the mean it was smaller (11\%) and not particularly robust. We thus find that the minimum wage can indeed reduce gender wage disparities. While the effect is highest for the low-paid, it also reaches up into higher parts of the wage distribution.}, language = {en} } @article{CaliendoTuebbicke2021, author = {Caliendo, Marco and T{\"u}bbicke, Stefan}, title = {Der Gr{\"u}ndungszuschuss f{\"u}r Arbeitslose nach der Reform 2011}, series = {IAB-Kurzbericht : aktuelle Analysen aus dem Institut f{\"u}r Arbeitsmarkt- und Berufsforschung}, volume = {28}, journal = {IAB-Kurzbericht : aktuelle Analysen aus dem Institut f{\"u}r Arbeitsmarkt- und Berufsforschung}, publisher = {IAB}, address = {N{\"u}rnberg}, issn = {0942-167X}, pages = {8}, year = {2021}, abstract = {Mit der Reform des Gr{\"u}ndungszuschusses im Jahr 2011 wurden die Rahmenbedingungen der Gr{\"u}ndungsf{\"o}rderung f{\"u}r Arbeitslose im Sozialgesetzbuch III umfassend reformiert und die F{\"o}rderzahlen reduzierten sich drastisch. Insgesamt ist das Arbeitsmarktinstrument weiterhin ein Erfolg: Die meisten Gef{\"o}rderten sind auch knapp 3,5 Jahre nach der Gr{\"u}ndung noch selbstst{\"a}ndig und etwa ein Drittel von ihnen hat mindestens einen Besch{\"a}ftigen. Von denjenigen, die ihre Selbstst{\"a}ndigkeit inzwischen beendet haben, sind die meisten sozialversicherungspflichtig besch{\"a}ftigt. Damit haben Gef{\"o}rderte eine deutlich h{\"o}here Besch{\"a}ftigungsquote als vergleichbare Personen ohne diese F{\"o}rderung. Auch ihre monatlichen Nettoverdienste sowie ihre Jobzufriedenheit sind h{\"o}her. Verbesserungspotenzial gibt es allerdings bei der sozialen Absicherung: Gef{\"o}rderte zahlen seltener in eine Rentenversicherung oder in die Arbeitslosenversicherung ein und sind mit ihrer sozialen Absicherung unzufriedener als vergleichbare Personen.}, language = {de} } @misc{CaliendoGrammigSchneider2020, author = {Caliendo, Marco and Grammig, Joachim and Schneider, Hilmar}, title = {Reinhard Hujer}, series = {AStA Wirtschafts- und Sozialstatistisches Archiv}, volume = {14}, journal = {AStA Wirtschafts- und Sozialstatistisches Archiv}, number = {3-4}, publisher = {Springer}, address = {Berlin}, issn = {1863-8155}, doi = {10.1007/s11943-020-00277-6}, pages = {219 -- 223}, year = {2020}, language = {de} } @article{CaliendoCobbClarkPfeiferetal.2023, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Pfeifer, Harald and Uhlendorff, Arne and Wehner, Caroline}, title = {Managers' risk preferences and firm training investments}, series = {European economic review}, journal = {European economic review}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0014-2921}, doi = {10.1016/j.euroecorev.2023.104616}, pages = {36}, year = {2023}, abstract = {This study analyses the impact of managers' risk preferences on their training allocation decisions. We begin by providing nationally representative evidence that managers' risk-aversion is negatively correlated with the likelihood that their firms engage in any worker training. Using a novel vignette study, we then demonstrate that risk-tolerant and risk-averse decision makers have significantly different training preferences. Risk aversion results in increased sensitivity to turnover risk. Managers who are risk-averse offer less general training and are more reluctant to train workers with a history of job mobility. Adopting a weighting approach to flexibly control for observed differences in the characteristics of risk-averse and risk-tolerant managers, we show that our findings cannot be explained by heterogeneity in either managers' observed characteristics or the type of firms where they work. All managers, irrespective of their risk preferences, are sensitive to the investment risk associated with training, avoiding training that is more costly or that targets those with less occupational expertise or nearing retirement. This provides suggestive evidence that the risks of training are primarily due to the risk that trained workers will leave the firm (turnover risk) rather than the risk that the benefits of training do not outweigh the costs (investment risk).}, language = {en} }