Publications Based on SOEP Data: SOEPlit

Hard Evidence on Soft Skills

This paper summarizes recent evidence on what achievement tests measure; how achievement tests relate to other measures of “cognitive ability” like IQ and grades; the important skills that achievement tests miss or mismeasure, and how much these skills matter in life. Achievement tests miss, or perhaps more accurately, do not adequately capture, soft skills – personality traits, goals, motivations, ...

Efficiency and distribution effects of a revenue-neutral income tax reform

Are economic conditions related to nonnormative life satisfaction development? Evaluating the relative impact of economic conditions, personality, and subjective health

This study examined the relative contribution of psychological and socioeconomic resources to explaining qualitative individual differences in life satisfaction development. We used growth mixture modeling and a cohort-sequential design to investigate life satisfaction development from age 25 to 65, in a nationally representative panel (the SOEP). Eighty-three percent of the participants experienced ...

Perceived control in low-control circumstances: Control beliefs predict a greater decrease in life satisfaction following job loss

Whereas perceived control is generally conducive to effective self-regulation and well-being, it may predict more negative reactions to life events that are associated with a disconfirmation of control. Using data from a nationally representative panel study (the GSOEP) we tested whether perceived control is associated with more negative reactions to job loss (i.e., a partially uncontrollable negative ...

Changing Identity: Retiring from Unemployment

Using German panel data, we show that unemployed people are, on average, less satisfied with their life than employed people, but they report a substantial increase in their life satisfaction upon retirement. We interpret this finding using identity theory. Retirement raises the identity utility of the unemployed because it changes the social norms they are supposed to adhere to. The social norm for ...

Looking Back in Anger? Retirement and Unemployment Scarring

Previous studies find that past unemployment reduces life satisfaction even after reemployment for non-monetary reasons (unemployment scarring). It is not clear, however, whether this scarring is only caused by employment-related factors, such as worsened working conditions, or increased future uncertainty as regards income and employment. Using German panel data, we identify non-employment-related ...

Income in Jeopardy: How Losing Employment Affects the Willingness to Take Risks

Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing one’s job reduces the willingness to take risks. This effect strengthens in previous hourly wage, begins to manifest itself as soon as an employee perceives the threat of job loss and is ...

Locus of Control and Performance Appraisal

This work contributes to the literature demonstrating an important role for psychological traits in labor market decisions. We show that West German workers with an internal locus of control sort into jobs with performance appraisals. Appraisals provide workers who believe they control their environment a tool to demonstrate their value and achieve their goals. We confirm that workers who are risk ...

Does Profit Sharing Reduce Conflict with the Boss? Evidence from Germany

Getting along with Colleagues - Does Profit Sharing Help or Hurt?