Organisational Behaviour and Corporate Success
This research group analyzes how non-monetary workplace characteristics (such as voice at the workplace or the perceived meaningfulness of the task) and managerial decision-making (e.g. as regards layoffs) influences the work motivation of employees. From a methodological persepective, the group focuses on conducting (field) experiments. First, such experiments allow us to obtain clean performance measures. Second, and more important, holding all things equal for every participating individual except for the treatment of interest, any change in workers’ performance can be put down to the experimenter’s intervention.
Research ClusterInstitutions and Social Norms
Paid Vacation Use: The Role of Works Councils
in: Economic and Industrial Democracy, forthcoming
The article investigates the relationship between codetermination at the plant level and paid vacation in Germany. From a legal perspective, works councils have no impact on vacation entitlements, but they can affect their use. Employing data from the German Socio-Economic Panel (SOEP), the study finds that male employees who work in an establishment, in which a works council exists, take almost two additional days of paid vacation annually, relative to employees in an establishment without such institution. The effect for females is much smaller, if discernible at all. The data suggest that this gender gap might be due to the fact that women exploit vacation entitlements more comprehensively than men already in the absence of a works council.
Measuring the Indirect Effects of Adverse Employer Behavior on Worker Productivity – A Field Experiment
in: The Economic Journal, forthcomingread publication
Wage Delegation in the Field
in: Journal of Economics & Management Strategy, forthcoming
By conducting a natural field experiment, we analyze the managerial policy of delegating the wage choice to employees. We find that this policy enhances performance significantly, which is remarkable since allocated wage premiums of the same size have no effect at all. Observed self‐imposed wage restraints and absence of negative peer effects speak in favor of wage delegation, although the chosen wage premium levels severely dampen its net value. Additional experimental and survey data provide important insights into employees' underlying motivations.
Financial Literacy and Self-employment
in: The Journal of Consumer Affairs, forthcoming
In this paper, we study the relationship between financial literacy and self‐employment. We use established financial literacy questions to measure literacy levels. The analysis shows a highly significant and positive correlation between the index and self‐employment. We address the direction of causality by applying instrumental variable techniques based on information about maternal education. We also exploit information on financial support and family background to account for concerns about the exclusion restriction. The results provide support for a positive effect of financial literacy on the probability of being self‐employed. As financial literacy is acquirable, the findings suggest that entrepreneurial activities might be increased by enhancing financial literacy.
Gender Stereotypes still in MIND: Information on Relative Performance and Competition Entry
in: Journal of Behavioral and Experimental Economics, 2019
By conducting a laboratory experiment, I test whether the gender tournament gap diminishes in its size after providing information on the relative performance of the two genders. Indeed, the gap shrinks sizeably, it even becomes statistically insignificant. Hence, individuals’ entry decisions seem to be driven not only by incorrect self-assessments in general but also by incorrect stereotypical beliefs about the genders’ average abilities. Overconfident men opt less often for the tournament and, thereby, increase their expected payoff. Overall efficiency, however, is not affected by the intervention.