TY - RPRT A1 - Caliendo, Marco A1 - Cobb-Clark, Deborah A. A1 - Silva-Goncalves, Juliana A1 - Uhlendorff, Arne T1 - Locus of control and the preference for agency T2 - IZA discussion paper N2 - 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. KW - locus of control KW - preference for agency KW - decision-making KW - beliefs KW - optimism KW - confidence KW - illusion of control Y1 - 2023 U6 - https://doi.org/10.2139/ssrn.4416820 SN - 2365-9793 VL - No. 16061 PB - Elsevier CY - Amsterdam ER - TY - JOUR A1 - Caliendo, Marco A1 - Cobb-Clark, Deborah A. A1 - Silva-Goncalves, Juliana A1 - Uhlendorff, Arne T1 - Locus of control and the preference for agency JF - European economic review N2 - 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. KW - locus of control KW - preference for agency KW - decision-making KW - beliefs KW - optimism KW - confidence KW - illusion of control Y1 - 2024 U6 - https://doi.org/10.1016/j.euroecorev.2024.104737 SN - 0014-2921 SN - 1873-572X VL - 165 IS - 104737 PB - Elsevier CY - Amsterdam ER - TY - THES A1 - Obst, Cosima T1 - Essays in labor economics T1 - Aufsätze zur Arbeitsmarktökonomie N2 - 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. N2 - Diese Dissertation bietet Einblicke in den Prozess der Entscheidung von Arbeitnehmer*Innen, in arbeitsbezogene Weiterbildung zu investieren. Insbesondere wird die Rolle von Persönlichkeitsmerkmalen und Einstellungen analysiert. Ziel ist es, zu verstehen, ob solche Eigenschaften zu einer Unterinvestition in Weiterbildung beitragen. Wichtig ist, dass zwischen allgemeiner und spezifischer Weiterbildung unterschieden wird, wobei im ersten Fall die Produktivität des Arbeitnehmers in vielen Unternehmen steigt und im zweiten Fall nur im aktuellen Unternehmen. Darüber hinaus leistet diese Dissertation einen Beitrag zur Evaluation der Einführung des Mindestlohns in Deutschland im Jahr 2015, indem sie kausale Effekte auf Löhne und Arbeitszeiten identifiziert. Die Kapitel zwei bis vier befassen sich mit der Entscheidung für eine berufsbezogene Weiterbildung. Erstens sehen Personen mit einem internale Locus of Control einen direkten Zusammenhang zwischen ihren eigenen Handlungen und ihrem Arbeitsmarkterfolg, während externale Personen ihre Ergebnisse mit dem Schicksal, dem Glück und anderen Personen in Verbindung bringen. Folglich ist zu erwarten, dass interne Personen höhere Erträge aus der Weiterbildung erwarten und daher eher bereit sind, teilzunehmen. Die Ergebnisse spiegeln diese Hypothese wider: Internale Personen nehmen mit größerer Wahrscheinlichkeit an allgemeinen (aber nicht an spezifischen) Weiterbildungsmaßnahmen teil. Zweitens können Weiterbildungen entweder als riskante Investition oder als Versicherung gegen negative Arbeitseinkommensschocks betrachtet werden. In beiden Fällen ist davon auszugehen, dass die Risikobereitschaft eine Rolle im Entscheidungsprozess spielt. Die Daten deuten darauf hin, dass risikofreudige Personen mit größerer Wahrscheinlichkeit an einer allgemeinen (aber nicht an einer spezifischen) Fortbildung teilnehmen und somit eine Fortbildung im Durchschnitt als riskante Investition angesehen wird. Drittens beeinflusst die Arbeitszufriedenheit die Verhaltensentscheidungen im Arbeitskontext, wobei unzufriedene Arbeitnehmer*Innen darauf reagieren können, indem sie ihre Pflichten vernachlässigen, die Situation verbessern oder den Arbeitsplatz kündigen. Im ersten Fall ist davon auszugehen, dass unzufriedene Arbeitnehmer*Innen weniger in die Weiterbildung investieren, während die beiden letztgenannten Reaktionen zu einer höheren Teilnahmequote bei unzufriedenen Arbeitnehmer*Innen führen könnten. Die Ergebnisse deuten darauf hin, dass unzufriedene Arbeitnehmer*Innen im Durchschnitt weniger in Weiterbildungen investieren als zufriedene Arbeitnehmer*Innen. Bei näherer Betrachtung der Kündigungsabsichten und der verschiedenen Ursachen der Unzufriedenheit ergibt sich jedoch ein weniger klares Bild, das auf die Komplexität des Konstrukts der Arbeitszufriedenheit hinweist. In den Kapiteln fünf und sechs wird die Einführung des Mindestlohns in Deutschland im Jahr 2015 evaluiert. Zunächst lässt sich für 2015 ein Anstieg des Wachstums der Stundenlöhne als kausaler Effekt der Mindestlohneinführung identifizieren. Gleichzeitig führt jedoch eine Verringerung der Wochenarbeitszeit zu einem insgesamt unveränderten Wachstum der Monatsverdienste. Betrachtet man die Auswirkungen im Jahr 2016, so verschwindet der Rückgang der Wochenarbeitszeit, was zu einem signifikanten Anstieg des Wachstums der Monatsverdienste aufgrund des Mindestlohns führt. Die Analyse legt nahe, dass der Anstieg der Stundenlöhne nicht ausreichte, um sicherzustellen, dass alle Arbeitnehmer*Innen den Mindestlohn erhalten. Dies deutet darauf hin, dass die Nichteinhaltung in den ersten Jahren nach der Einführung des Mindestlohns ein Problem darstellt. KW - work-related training KW - personality traits KW - locus of control KW - risk attitudes KW - job satisfaction KW - minimum wage KW - hourly wages and monthly earnings KW - weekly working hours KW - Stundenlöhne und Monatseinkommen KW - Arbeitszufriedenheit KW - Kontrollüberzeugung KW - Mindestlohn KW - Persönlichkeitsmerkmale KW - Risikobereitschaft KW - wöchentliche Arbeitszeiten KW - Weiterbildungen Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-563794 ER - TY - RPRT A1 - Caliendo, Marco A1 - Hennecke, Juliane T1 - Drinking is Different! BT - Examining the Role of Locus of Control for Alcohol Consumption T2 - CEPA Discussion Papers N2 - 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. T3 - CEPA Discussion Papers - 18 KW - locus of control KW - alcohol consumption KW - health behavior KW - risk perception KW - social investment Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-469790 SN - 2628-653X IS - 18 ER - TY - JOUR A1 - Caliendo, Marco A1 - Hennecke, Juliane T1 - Drinking is different! BT - examining the role of locus of control for alcohol consumption JF - Empirical economics N2 - Locus of control (LOC) measures how much an individual believes in the causal relationship between her own actions and her life’s outcomes. While earlier literature has shown 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 very informative German panel data, we extend and generalize previous findings and find a significant positive association between having an internal LOC and the probability of occasional and regular drinking for men and women. An increase in an individual’s LOC by one standard deviation increases the probability of occasional or regular drinking on average by 3.4% for men and 6.9% for women. Using a decomposition method, we show that roughly a quarter of this association can be explained by differences in the social activities between internal and external individuals. KW - locus of control KW - alcohol consumption KW - health behavior KW - risk perception KW - social activity Y1 - 2022 U6 - https://doi.org/10.1007/s00181-022-02219-3 SN - 0377-7332 SN - 1435-8921 VL - 63 IS - 5 SP - 2785 EP - 2815 PB - Springer CY - Berlin ER -