@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} } @techreport{CaliendoCobbClarkPfeiferetal.2022, type = {Working Paper}, 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 = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {44}, issn = {2628-653X}, doi = {10.25932/publishup-53843}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-538439}, pages = {45}, year = {2022}, abstract = {We provide the first estimates of the impact of managers' risk preferences on their training allocation decisions. Our conceptual framework links managers' risk preferences to firms' training decisions through the bonuses they expect to receive. Risk-averse managers are expected to select workers with low turnover risk and invest in specific rather than general training. Empirical evidence supporting these predictions is provided using a novel vignette study embedded in a nationally representative survey of firm managers. 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 significantly less general training and, in some cases, are more reluctant to train workers with a history of job mobility. All managers, irrespective of their risk preferences, are sensitive to the investment risk associated with training, avoiding training that is more costly or targets those with less occupational expertise or nearing retirement. This suggests 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} } @techreport{CaliendoFossenKritikos2019, type = {Working Paper}, author = {Caliendo, Marco and Fossen, Frank M. and Kritikos, Alexander}, title = {What Makes an Employer?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {13}, issn = {2628-653X}, doi = {10.25932/publishup-43736}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-437360}, year = {2019}, abstract = {As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to better understand which variables influence the first hiring decision and which ones influence the subsequent survival as an employer. Using the German Socio-economic Panel (SOEP), we analyze what role individual characteristics of entrepreneurs play in sustainable job creation. While human and social capital variables positively influence the hiring decision and the survival as an employer in the same direction, we show that none of the personality traits affect the two outcomes in the same way. Some traits are only relevant for survival as an employer but do not influence the hiring decision, other traits even unfold a revolving door effect, in the sense that employers tend to fail due to the same characteristics that positively influenced their hiring decision.}, language = {en} } @techreport{CaliendoGoethnerWeissenberger2019, type = {Working Paper}, author = {Caliendo, Marco and Goethner, Maximilian and Weißenberger, Martin}, title = {Entrepreneurial Persistence Beyond Survival: Measurement and Determinants}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {11}, issn = {2628-653X}, doi = {10.25932/publishup-43456}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-434563}, year = {2019}, abstract = {Entrepreneurial persistence is demonstrated by an entrepreneur's continued positive maintenance of entrepreneurial motivation and constantly-renewed active engagement in a new business venture despite counter forces or enticing alternatives. It is thus a crucial factor for entrepreneurs when pursuing and exploiting their business opportunities and to realize potential economic gains and benefits. Using rich data on a representative sample of German business founders, we investigate the determinants of entrepreneurial persistence. Next to observed survival we also construct a hybrid persistence measure capturing also the motivational dimension of persistence. We analyze the influence of individual-level (human capital and personality) and business-related characteristics on both measures as well as their relative importance. We find that the two indicators emphasize different aspects of persistence. For the survival indicator, the predictive power is concentrated in business characteristics and human capital, while for hybrid persistence, the dominant factors are business characteristics and personality. Finally, we show that results are heterogeneous across subgroups. In particular, formerly-unemployed founders do not differ in survival chances, but they are more likely to lack a high psychological commitment to their business ventures.}, language = {en} } @techreport{CaliendoGraeberKritikosetal.2022, type = {Working Paper}, author = {Caliendo, Marco and Graeber, Daniel and Kritikos, Alexander and Seebauer, Johannes}, title = {Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {46}, issn = {2628-653X}, doi = {10.25932/publishup-54899}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-548999}, pages = {65}, 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} } @techreport{CaliendoHennecke2020, type = {Working Paper}, author = {Caliendo, Marco and Hennecke, Juliane}, title = {Drinking is Different!}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {18}, issn = {2628-653X}, doi = {10.25932/publishup-46979}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-469790}, year = {2020}, abstract = {Unhealthy behavior can be extremely costly from a micro- and macroeconomic perspective and exploring the determinants of such behavior is highly important from an economist's point of view. We examine whether locus of control (LOC) can explain alcohol consumption as an important domain of health behavior. LOC measures how much an individual believes that she is in control of the consequences of her own actions for her life's future outcomes. While earlier literature showed that an increasing internal LOC is associated with increased health-conscious behavior in domains such as smoking, exercise or diets, we find that drinking seems to be different. Using German panel data from the Socio-Economic Panel (SOEP) we find a significant positive effect of having an internal LOC on the probability of moderate and regular drinking. We suggest and discuss two likely mechanisms for this relationship and find interesting gender differences. While social investments play an important role for both men and women, risk perceptions are especially relevant for men.}, language = {en} } @techreport{CaliendoKritikosRodriguezetal.2023, type = {Working Paper}, author = {Caliendo, Marco and Kritikos, Alexander and Rodriguez, Daniel and Stier, Claudia}, title = {Self-Efficacy and Entrepreneurial Performance of Start-Ups}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {61}, issn = {2628-653X}, doi = {10.25932/publishup-57252}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-572527}, pages = {41}, year = {2023}, abstract = {Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1,405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.}, language = {en} } @techreport{CaliendoKritikosStier2022, type = {Working Paper}, author = {Caliendo, Marco and Kritikos, Alexander and Stier, Claudia}, title = {The Influence of Start-up Motivation on Entrepreneurial Performance}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {59}, issn = {2628-653X}, doi = {10.25932/publishup-57115}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-571152}, pages = {43}, year = {2022}, 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, expansion and innovation activities for up to 40 months after business formation. Using 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} } @techreport{CaliendoKuennMahlstedt2022, type = {Working Paper}, author = {Caliendo, Marco and K{\"u}nn, Steffen and Mahlstedt, Robert}, title = {The Intended and Unintended Effects of Promoting Labor Market Mobility}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-53522}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-535229}, pages = {49}, year = {2022}, abstract = {Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility - as intended - causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers.}, language = {en} } @techreport{CaliendoKuennWeissenberger2019, type = {Working Paper}, author = {Caliendo, Marco and K{\"u}nn, Steffen and Weißenberger, Martin}, title = {Catching up or Lagging Behind?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {12}, issn = {2628-653X}, doi = {10.25932/publishup-43701}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-437012}, year = {2019}, 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 nonunemployment 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} }