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 - Kritikos, Alexander A1 - Stier, Claudia T1 - The influence of start-up motivation on entrepreneurial performance JF - Small business economics N2 - 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. KW - entrepreneurship KW - push and pull theories KW - start-up motivation KW - survival KW - job creation KW - firm growth KW - innovation Y1 - 2023 U6 - https://doi.org/10.1007/s11187-022-00722-6 SN - 0921-898X SN - 1573-0913 VL - 61 SP - 869 EP - 889 PB - Springer Science+Business Media CY - Dordrecht ER - TY - JOUR A1 - Caliendo, Marco A1 - Tübbicke, Stefan T1 - Design and effectiveness of start-up subsidies BT - evidence from a policy reform in Germany JF - Economic analysis and policy N2 - 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. KW - start-up subsidies KW - institutions KW - policy reform KW - difference-in-differences Y1 - 2021 U6 - https://doi.org/10.1016/j.eap.2021.02.015 SN - 0313-5926 VL - 70 SP - 333 EP - 340 PB - Elsevier CY - Amsterdam ER - TY - JOUR A1 - Burauel, Patrick F. A1 - Caliendo, Marco A1 - Grabka, Markus M. A1 - Obst, Cosima A1 - Preuss, Malte A1 - Schröder, Carsten A1 - Shupe, Cortnie T1 - The impact of the German minimum wage on individual wages and monthly warnings JF - Jahrbücher für Nationalökonomie und Statistik = Journal of economics and statistics N2 - 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. KW - minimum wage KW - wage and earnings structure KW - inequality Y1 - 2020 U6 - https://doi.org/10.1515/jbnst-2018-0077 SN - 0021-4027 SN - 2366-049X VL - 240 IS - 2-3 SP - 201 EP - 231 PB - De Gruyter CY - Berlin ER - TY - RPRT A1 - Schröder, Carsten A1 - Göbler, Konstantin A1 - Grabka, Markus M. A1 - Kolb, Chris A1 - Shupe, Cortnie A1 - Caliendo, Marco A1 - Tübbicke, Stefan A1 - Priem, Maximilian T1 - Auswirkungen des gesetzlichen Mindestlohns auf Haushaltseinkommen, Konsum- und Sparverhalten BT - Endbericht Y1 - 2020 UR - https://www.mindestlohn-kommission.de/DE/Forschung/Projekte/pdf/Bericht-Mindestlohn-Haushaltseinkommen.pdf?__blob=publicationFile&v=1 SP - 1 EP - 85 PB - Deutsche Institut für Wirtschaftsforschung CY - Berlin ER - TY - JOUR A1 - Caliendo, Marco A1 - Graeber, Daniel A1 - Kritikos, Alexander A1 - Seebauer, Johannes T1 - Pandemic depression BT - COVID-19 and the mental health of the self-employed JF - Entrepreneurship theory and practice N2 - 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. KW - self-employment KW - COVID-19 KW - mental health KW - gender KW - representative longitudinal survey data KW - PHQ-4 score KW - resilience Y1 - 2022 U6 - https://doi.org/10.1177/10422587221102106 SN - 1042-2587 VL - 47 IS - 3 SP - 788 EP - 830 PB - SAGE Publishing CY - Thousand Oaks ER - TY - JOUR A1 - Caliendo, Marco A1 - Fossen, Frank M. A1 - Kritikos, Alexander T1 - Personality characteristics and the decision to hire JF - Industrial and corporate change N2 - 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. Y1 - 2021 U6 - https://doi.org/10.1093/icc/dtab062 SN - 0960-6491 SN - 1464-3650 VL - 31 IS - 3 SP - 736 EP - 761 PB - Oxford University Press CY - Oxford ER - TY - JOUR A1 - Caliendo, Marco A1 - Cobb-Clark, Deborah A. A1 - Obst, Cosima A1 - Seitz, Helke A1 - Uhlendorff, Arne T1 - Locus of control and investment in training JF - Journal of human resources N2 - 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. Y1 - 2022 U6 - https://doi.org/10.3368/jhr.57.4.0318-9377R2 SN - 0022-166X SN - 1548-8004 VL - 57 IS - 4 SP - 1311 EP - 1349 PB - University of Wisconsin Press CY - Madison ER - TY - JOUR A1 - Caliendo, Marco A1 - Rodríguez, Daniel T1 - Divergent thinking and post-launch entrepreneurial outcomes BT - non-linearities and the moderating role of experience JF - Small business economics N2 - 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. Y1 - 2023 U6 - https://doi.org/10.1007/s11187-023-00828-5 SN - 0921-898X SN - 1573-0913 VL - 57 PB - Springer Science + Business Media B.V. CY - Dordrecht ER - TY - JOUR A1 - Caliendo, Marco A1 - Fedorets, Alexandra A1 - Preuss, Malte A1 - Schröder, Carsten A1 - Wittbrodt, Linda T1 - The short- and medium-term distributional effects of the German minimum wage reform JF - Empirical economics N2 - 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. KW - minimum wage KW - wage distribution KW - hourly wages KW - inequality Y1 - 2022 U6 - https://doi.org/10.1007/s00181-022-02288-4 SN - 0377-7332 SN - 1435-8921 VL - 64 SP - 1149 EP - 1175 PB - Springer CY - Berlin ER -