Socio-Economic Panel Research Articles

The immigrant-native gap in risk and time preferences in Germany: levels, socio-economic determinants, and recent changes

We present new descriptive evidence on the immigrant-native gap in risk and time preferences in Germany, one of immigrants’ most preferred destination countries. Using the recent waves of the Socio-Economic Panel (SOEP) dataset, we find that the immigrant-native gap in risk preferences has widened for recent immigration cohorts, especially around the time of the 2015 European Refugee Crisis. We attribute the recent widening to decreased assimilation rates of new immigrants caused by reduced integration due to sudden increases in immigrants flows from culturally diverse parts of the world, particularly around the year 2015. We also find that the immigrant-native gap varies across different migrant groups: “Opportunity seekers,” which we define as economic immigrants who intend to stay in Germany only temporarily, are very similar in their risk preferences to natives. Other immigrants, however, are substantially more risk averse than natives. A smaller gap in risk preferences is also found among migrants who are female, highly educated, proficient in the host language, self-employed, and working in predominantly high-skilled jobs. Concerning time preferences, a noticeably large immigrant-native gap is evident, but the gap does not vary across most individual-level socio-economic variables.

Resilient entrepreneurs? — revisiting the relationship between the Big Five and self-employment

The Big Five personality traits and their influence on entrepreneurial action have been repeatedly studied using a trait-based approach. The present paper partly deviates from this perspective by analysing the role of personality prototypes in relation to entrepreneurship. This person-centred approach suggests that combinations of Big Five traits form individual personalities. By using data from the German Socio-Economic Panel (SOEP), we show that at least three prototypes can be identified, one of which — the resilient type — can be hypothesized to significantly increase the likelihood of entrepreneurial action. Our regression results provide evidence of a positive impact of this prototype on the likelihood of and transitioning into self-employment but not the likelihood of exit. We also show that the prototyping approach explains individual self-employment decisions over and above what can already be explained by the profiling approach, another person-centred Big Five approach. The paper concludes with implications for policy and research.

Overeducation as moderator for the link between job change and job satisfaction among immigrants and natives in Germany

Job satisfaction is a major driver of an individual’s subjective well-being and thus affects public health, societal prosperity, and organisations, as dissatisfied employees are less productive and more likely to change jobs. However, changing jobs does not necessarily lead to higher job satisfaction in the long run. Previous studies have shown, instead, that changing jobs only increases job satisfaction for a short period of time before it gradually falls back to similar levels as before. This phenomenon is known as the ’honeymoon–hangover’ pattern. In our study, we identify an important new moderator of the relation between job change and job satisfaction: the job–education match of job changes. Based on relative deprivation theory, we argue that job changes from being overeducated in a job lowers the likelihood of negative comparisons and thus increases the honeymoon period, lessens the hangover period, and increases long-term job satisfaction. We use data from the Socio-Economic Panel ranging from 1994–2018 and focus specifically on individual periods of employees before and after job changes (n = 134,404). Our results confirm that a change to a job that requires a matched education has a stronger and longer-lasting effect on job satisfaction, and that this effect is slightly lower for respondents born abroad.

The chips are down: the influence of family on children’s trust formation

Understanding the formation of trust is a key issue because of the impact of trust on economic performance. Earlier attempts to measure the strength of intergenerational transmission of trust relied on the cross-sectional regression of children’s trust on the contemporaneous trust of parents. In this paper, we take an original approach to the analysis of the transmission process by introducing the distinction between permanent trust (the long-lasting belief on whether one trusts people) and transient trust (capturing, e.g., random errors in the reported trust), and argue that only permanent trust is relevant for the transmission process. Using data from the German Socio-Economic Panel, we show that 2/3 of the observed variability in children’s trust is due to the transient component. The remaining variability due to the permanent component is only moderately determined by the permanent trust of the parents, with mothers being much more relevant than fathers. Focusing on the subsample of families with more than one child, we show that most of the variability in children’s permanent trust is due to unobservable family-specific features of the environment shared by siblings. We conclude that while the family environment in which children grew up determines most of their permanent trust, the direct role of intergenerational transmission is small.

Worries about inadequate medical treatment in case of a COVID-19 infection: the role of social inequalities, COVID-19 prevalence and healthcare infrastructure

BackgroundThis study investigates individual and regional determinants of worries about inadequate medical treatment in case of a COVID-19 infection, an important indicator of mental wellbeing in pandemic times as it potentially affects the compliance with mitigation measures and the willingness to get vaccinated. The analyses shed light on the following questions: Are there social inequalities in worries about inadequate medical treatment in case of a COVID-19 infection? What is the role of the regional spread of COVID-19 infections and regional healthcare capacities?MethodsBased on data derived from the German Socioeconomic Panel (SOEP), a representative sample of the German population aged 18 years and over, we estimated multilevel logistic regression models with individual-level (level 1) and regional-level (level 2) variables. The regional variables of interest were (a) the number of COVID-19 infections, (b) the number of hospital beds as an overall measure of the regional healthcare capacities, and (c) the number of free intensive care units as a measure of the actual capacities for treating patients with severe courses of COVID-19.ResultsWomen, older respondents, persons with migrant background and those with a lower socioeconomic status were more likely to report worries about inadequate medical treatment in case of a COVID-19 infection. Moreover, respondents with chronic illness, lower subjective health and those who consider COVID-19 as a threat for their own health were more likely to report worries. In addition, also regional characteristics were relevant. Worries were more common in poorer regions with higher COVID-19 infections and worse health infrastructure as indicated by the number of hospital beds.ConclusionsThe analysis not only indicates that several social groups are more concerned about inadequate medical treatment in case of a COVID-19 infection, but also highlights the need for considering regional-level influences, such as the spread of the virus, poverty rates and healthcare infrastructure, when analyzing the social and health-related consequences of the pandemic.

Estimating Regional Income Indicators under Transformations and Access to Limited Population Auxiliary Information

AbstractSpatially disaggregated income indicators are typically estimated by using model-based methods that assume access to auxiliary information from population micro-data. In many countries like Germany and the UK population micro-data are not publicly available. In this work we propose small area methodology when only aggregate population-level auxiliary information is available. We use data-driven transformations of the response to satisfy the parametric assumptions of the used models. In the absence of population micro-data, appropriate bias-corrections for small area prediction are needed. Under the approach we propose in this paper, aggregate statistics (means and covariances) and kernel density estimation are used to resolve the issue of not having access to population micro-data. We further explore the estimation of the mean squared error using the parametric bootstrap. Extensive model-based and design-based simulations are used to compare the proposed method to alternative methods. Finally, the proposed methodology is applied to the 2011 Socio-Economic Panel and aggregate census information from the same year to estimate the average income for 96 regional planning regions in Germany.

Gendered occupational aspirations among German youth: Role of parental occupations, gender division of labour, and family structure

Objective: This study investigates how multiple domains of parental gender role socialisation as well as parent-child relationships and family structure may shape adolescents’ gendered occupational aspirations.
 Background: Young people with gender-typical aspirations have a higher chance of choosing gender-typical post-secondary education fields and are more likely to work in gender-typical occupations as adults. Gender norms, family structures and parent-child relationships have undergone profound changes in recent decades. We extend the intergenerational transmission literature by considering whether the influence of parental role modelling may vary according to parent-child relationships and family structure.
 Method: We draw on data from 2,235 adolescents from the German Socio-Economic Panel and apply logistic regressions.
 Results: Children whose fathers were employed in gender-typical jobs had a greater likelihood of aspiring to a more gender-typical occupation. This relationship was not significant among sons who did not live continuously with both parents since birth, who were generally more likely to aspire to gender-typical occupations. Surprisingly, the gender-typicality of fathers' occupations seemed more influential among daughters whose parents had separated than among those who lived continuously with both parents. Regarding the parental gender division of paid and unpaid work, only mothers' continuous non-employment was associated with daughters being more likely to aspire to a gender-typical occupation.
 Conclusion: On the whole, our findings suggest a rather weak influence of parental gender role modelling on children’s persistently gendered occupational aspirations in Germany. Yet, our study extends existing family research by pointing to significant variations across family structures.

For better or worse: How more flexibility in working time arrangements and parental leave experiences affect fathers' working and childcare hours in Germany

Objective: In this study, we investigate the effect of flexible working time arrangements and parental leave experiences on the actual working and childcare hours of men.
 Background: Many fathers want to spend more time with their children and actively participate in family life, but, after becoming a parent, most work even more hours than before. To better combine work and family, the possibility of flexible working time arrangements might play a crucial role for fathers, also to become more involved in childcare activities.
 Method: We use longitudinal data of the German Socio-Economic Panel (SOEP) to examine how flexible working time arrangements, parental leave experiences, working hours, and childcare hours are related. Based on data between 2013 and 2019, panel regression models were estimated.
 Results: The results show that a change from fixed to flexible working time regulations leads to an increase in working hours for men and fathers. The longer working hours of fathers go hand in hand with a reduction in the time spent on childcare activities when switching to flexible working time arrangements. However, experiences with parental leave in connection with flexible working hours show a change in the use of time.
 Conclusion: Flexible working time regulations prove to be ambivalent for fathers: On the one hand, they offer fathers new leeway, on the other hand, due to traditional role models, they lead to longer working hours and thus less participation in childcare; but parental leave experiences make a difference, which indicates the importance of these regulations for fathers.

COVID-19, climate shocks, and food security linkages: evidence and perceptions from smallholder farming communities in Tanzania

AbstractInsights on the indirect effects of the COVID-19 pandemic are critical for designing and implementing policies to alleviate the food security burden it may have caused, and for bolstering rural communities against similar macroeconomic shocks in the future. Yet estimating the causal effects of the pandemic is difficult due to its ubiquitous nature and entanglement with other shocks. In this descriptive study, we combine high-resolution satellite imagery to control for plot-level rainfall with household socio-economic panel data from 2014, 2016, 2019 and 2020, to differentiate the effect of the pandemic from climatic shocks on food security in Morogoro, Tanzania. We find evidence of decreased incomes, increased prices of staple foods, and increased food insecurity in 2020 relative to previous years, and link these changes to the pandemic by asking households about their perceptions of COVID-19. Respondents overwhelmingly attribute economic hardships to the pandemic, with perceived impacts differing by asset level.

Corona Monitoring Nationwide (RKI-SOEP-2): Seroepidemiological Study on the Spread of SARS-CoV-2 Across Germany

Abstract SARS-CoV-2, the coronavirus, spread across Germany within just a short period of time. Seroepidemiological studies are able to estimate the proportion of the population with antibodies against SARS-CoV-2 infection (seroprevalence) as well as the level of undetected infections, which are not captured in official figures. In the seroepidemiological study Corona Monitoring Nationwide (RKI-SOEP-2), biospecimens and interview data were collected in a nationwide population-based subsample of the Socio-Economic Panel (SOEP). By using laboratory-analyzed blood samples to detect antibodies to the SARS-CoV-2 virus, we were able to identify a history of vaccination or infection in study participants. By combining these results with survey data, we were able to identify groups within the population that are at increased risk of infection. By linking the RKI-SOEP-2 survey data with data from other waves of the SOEP survey, we will be able to examine the medium- to long-term impacts of the COVID-19 pandemic, including effects of long COVID, in diverse areas of life. Furthermore, the data provide insight into the population’s willingness to be vaccinated as well as related attitudes and conditions. In sum, the RKI-SOEP-2 survey data offer a better understanding of the scope of the epidemic in Germany and can help in identifying target groups for infection control in the present and future pandemics.

How Stable is Your Customer? Individual and Ipsative Consistency of Consumers’ Big Five Personality Traits

In purchase behavior research, the personal dispositions of consumers can play a decisive role. This becomes relevant especially in very narrow target groups when socio-demographic constraints are very similar. In the present study, three types of continuity and change in the Big Five personality traits are investigated. While the Big Five personality traits have been extensively studied at the population level over the last decades, there is very little research at the individual level. This study is intended to fill the gap by investigating individual change and ipsative stability using representative panel data. Across four assessments, separated by four years, of the German Socio-Economic Panel (SOEP) from 2005 to 2017, a total of 58,502 participants (ages 16–103, 53% female) completed a 16-item personality short test. An exploratory structural equation analysis revealed very good model fit over age in all four observations. Individual change of a trait is examined by Asendorpf's IS indicator while ipsative stability is measured by the double-entry intra-class correlation coefficient. The results showed that in both domains, stability showed an inverse u-shape with a peak between the ages of 40 and 50.

The short- and medium-term distributional effects of the German minimum wage reform

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.

The Use of Cultivated Land for Multiple Functions in Major Grain-Producing Areas in Northeast China: Spatial-Temporal Pattern and Driving Forces

The increasing scarcity of cultivated land resources necessitates the continuous change in cultivated land functions. Cultivated land has gradually changed from being used for a single function to multiple functions. The use of cultivated land for multiple functions has become an important way to achieve the sustainable use, management, and protection of cultivated land. In this, the development of different functions of cultivated land must be coordinated. Thus, clarifying the evolution trend of the use of cultivated land for various functions, calculating the coupling and coordination degrees of these multiple functions, and identifying the driving factors in these uses play important roles in realizing the orderly development of cultivated land multifunctionality. This paper defined multifunctioning cultivated land as containing a production function, a social function, and an ecological function. Based on the socioeconomic panel data and geospatial data of Heilongjiang, Jilin, and Liaoning, which are the major grain-producing areas of northeast China, in the years 2005, 2010, 2015, and 2020 we calculated the multiple function coupling coordination degree of cultivated land using the Coupling Coordination Degree Model and identified the driving forces in the evolution of the spatial-temporal pattern of cultivated land multifunctionality using Geodetector. The results show that from 2005 to 2020, there were significant regional differences in terms of the production, social, and ecological functions of cultivated land in the research areas. The multifunctional coupling coordination degree of cultivated land in the study areas was gradually improved. The spatial-temporal evolution of the multifunctional coupling coordination degree of cultivated land was found to mainly be influenced by the level of agricultural development, such as the level of per capita disposable income and the rate of effective irrigation of cultivated land. The government should attempt to guarantee the comparative benefits of agricultural production to increase the income level of farmers; increase investment in agricultural infrastructure construction to improve the level of agriculture development; and implement a strict farmland protection policy to achieve the continuous improvement of the productivity of cultivated land, realize the ordered development of coupling, and improve the coordination of the use of cultivated land for multiple functions. The results of this study are applicable not only to northeast China but also to other major grain-producing areas that are under pressure to protect their cultivated land and achieve the suitable use of cultivated land.

Kind – und dann? Wandel partnerschaftlicher Erwerbsverläufe drei Jahre nach dem Übergang in die Elternschaft

ZusammenfassungDer Übergang in die Elternschaft markiert für viele Elternpaare den Übergang in geschlechterspezifische Erwerbsarrangements, oft unabhängig von der gelebten vorgeburtlichen Arbeitsteilung. Dabei können die Entscheidungen über die Erwerbsarrangements nach der Geburt des ersten Kindes richtungsgebend für die zukünftigen Erwerbsverläufe und Alterssicherung sein. Vor diesem Hintergrund fokussiert der Beitrag auf zwei Fragen: erstens, ob sich gerade für jüngere Elternpaare der in den 1980er-Jahren Geborenen eine Konvergenz in den Erwerbsverläufen nach dem Übergang in die Elternschaft im Vergleich zu den in den 1970er-Jahren geborenen Elternpaaren zeigt und zweitens, ob die Arbeitsteilung vor dem Übergang in die Elternschaft eine zunehmende Rolle für die Erwerbskonstellationen danach spielt. Unter Verwendung der Daten des Sozio-oekonomischen Panels (SOEP) werden anhand sequenz-, cluster- und regressionsanalytischer Verfahren Erwerbsverläufe von 900 Paaren über 36 Monate nach dem Übergang in die Elternschaft analysiert. Für die Kohorte der in den 1980er-Jahren Geborenen setzt sich die Bedeutungsabnahme traditioneller Erwerbsarrangements fort. Zudem gibt es immer mehr Elternpaare, in denen beide Elternteile relativ schnell nach der Geburt eines Kindes in die Erwerbstätigkeit zurückkehren. Kaum zu beobachten ist, dass Väter ihre Erwerbstätigkeit zunehmend zugunsten einer stärkeren Einbindung in Haushalts- oder Familientätigkeiten einschränken. Hingegen scheinen die Konvergenzen in den Erwerbsverläufen zwischen Müttern und Vätern vielmehr ein Resultat zunehmender Erwerbsdiskontinuitäten zu sein. Darüber hinaus hat die vorgeburtliche Arbeitsteilung auch für die jüngeren Elternpaare einen eher geringen Einfluss auf ihre nachgeburtlichen Erwerbskonstellationen. Die Ergebnisse legen nahe, dass der Abbau von geschlechterspezifischen Ungleichheiten am Arbeitsmarkt verstärkt voranzutreiben ist, damit weitere Anreize für die gleichmäßigere Erwerbsaufteilung im Paarkontext entstehen können.

Turning the tide on environmental poverty in Ghana: Does financial inclusion matter?

Environmental deprivation is a significant setback to the achievement of Sustainable Development Goals (SDGs). Households' investment in and adoption of environmental innovation products and services is constrained by access to finance and financing instruments. Using a multidimensional framework, this study examines the impact of financial inclusion on environmental poverty from a developing country setting. With a two-wave socioeconomic panel survey on Ghana, we develop a multidimensional financial inclusion and environmental poverty index based on dwelling, water, sanitation facilities, and energy. This study employs a number of robust techniques, including the Lewbel two-stage least squares and propensity score matching techniques. The results show that being financially included decreases households' probability of being environmentally poor by about 4.2 to 5.1 %. This result is consistent with different cutoffs of financial inclusion, multidimensional environmental poverty, and other population subgroups. This study also observes that risk aversion and depression act as possible mediators for financial inclusion's negative impact on environmental poverty. These findings provide policy support for the improvement in financial inclusion strategies to solve environmental poverty issues for a safe, healthy, and sustainable environment toward the achievement of SDGs.

Maternal mental health and adverse birth outcomes

Recent research in economics emphasizes the role of in utero conditions for the health endowment at birth and in early childhood and for social as well as economic outcomes in later life. This paper analyzes the relation between maternal mental health during pregnancy and birth outcomes of the child. In particular, we analyze the relationship between maternal mental health during pregnancy and the probability of giving birth preterm (PT), having a newborn at low birth weight (LBW) or being small for gestational age (SGA). Based on large population-representative data from the German Socio-Economic Panel (SOEP) and cohort data from the National Educational Panel Study (NEPS), we present extensive descriptive evidence on the relationship between maternal mental health and preterm birth by carrying out OLS estimates controlling for a wide range of socioeconomic characteristics. In addition, we apply matching estimators and mother fixed effects models, which bring us closer toward a causal interpretation of estimates. In summary, the results uniformly provide evidence that poor maternal mental health is a risk factor for preterm birth and low birth weight in offspring. In contrast, we find no evidence for an relationship between maternal mental health and small for gestational age at birth.

Reduziert erwerbsbedingte Multilokalität das zivilgesellschaftliche Engagement? Ergebnisse für Deutschland anhand von quantitativen und qualitativen Daten

This paper is based on an investigation of the impact of taking up a work-related multi-local lifestyle on civic involvement based on quantitative and qualitative data using a methodological triangulation. Following theoretical considerations based on the civic voluntarismmodel, the resources-centered model, and the “commuter’s strain hypothesis”, a negative influence of the multi-local lifestyle on civic involvement is expected. Periodic presence and absence at the place of origin and destination, as well as associated reduced time and psychological resources, are hypothesized to be the central theoretical mechanisms of influence explaining the negative relationship. The quantitative investigation is based on fixedeffects panel regressions applied to longitudinal data from the Socio-Economic Panel (SOEP). The qualitative investigation is based on problem-centred, guided interviews conducted in a case study analysis in the rural district of Diepholz in Lower Saxony, Germany. The quantitative analyses indicate a significant negative effect of multi-locality on involvement and show that the strongest reduction in involvement temporally occurs with the start of multi-local living. The qualitative analyses confirm this finding and show that the postulated theoreticalmechanisms represent a central explanatory factor of the reduced involvement resulting from multi-locality.

My Wealth, (Y)Our Life Satisfaction? Sole and Joint Wealth Ownership and Life Satisfaction in Marriage

This study examines the money-subjective well-being nexus by studying the link between changes in jointly and solely (i.e. respondents’ own and their partner’s own) held gross wealth and changes in married individuals’ subjective well-being. Joint assets reflect norms of sharing responsibilities and resources. Solely held assets, in contrast, offer individual economic independence. Using wealth data from the German Socio-Economic Panel Study (SOEP; 2002, 2007, 2012, 2017), we estimate individual fixed effects regressions. Although coefficients for all three wealth measures are positive, our results highlight that only increases in jointly held wealth are associated with statistically significant increases in spouses’ life satisfaction in Germany. Despite expectations about a stronger relevance of joint wealth for men compared to women in line with men’s role as a financial provider for the family, we do not find substantial gender differences in the positive association between increases in joint wealth and life satisfaction. In light of the individualisation of marriages, our results highlight that the personal benefits associated with marital sharing of wealth seem to trump those of economic independence and financial autonomy.

High five! – the big 5 personality traits, locus of control, and impulsivity and their relationship to substance use in a large cohort of university students in Berlin

Background Research suggests that university students are at high risk of using licit and illicit substances and that there has been an increase over the last decade in substance use among university students in Berlin, Germany. The present study aims to investigate the relationship between personality and substance use among university students in the city of Berlin. Method A sample of 8778 students from 17 Berlin universities completed an online questionnaire. Short versions of the Big Five Inventory and the Barratt Impulsivity Scale as well as the SOEP-scale (German socioeconomic panel) for the concept of locus of control were used to assess personality traits. Four different user groups and six specific substances were studied using multinomial logistic and logistic regression models. Results Participants regularly using substances scored higher on impulsivity and openness and lower on conscientiousness compared to the other user groups. Further, they scored higher on extraversion and external locus of control compared to participants not using substances or exclusively drinking alcohol. Out of the personality dimensions examined, the relationship between substance use and impulsivity was strongest and had the highest effect size (medium) in our sample. Conclusions Despite increasing prevalence among the high-risk group of university students in Berlin, universities have not yet sufficiently adopted prevention programs. These programs should be adapted to meet the needs of the target group which may be complemented with the findings of the study (e.g. emotional regulation training and goal management training).

Is pain associated with subsequent job loss? A panel study for Germany

AbstractThe cross‐sectional association between pain and unemployment is well‐established. But the absence of panel data containing information on pain and labor market status has meant that less is known about the direction of any causal linkage. Those longitudinal studies that do examine the link between pain and subsequent labor market transitions suggest results are sensitive to the measurement of pain and model specification. We contribute to this literature using large‐scale panel data from the German Socio‐Economic Panel (GSOEP) for the period 2002 to 2018. We show that workers suffering pain are more likely than others to leave their job for unemployment or economic inactivity. This probability rises with the frequency of the pain suffered in the previous month. The effect persists having accounted for fixed unobserved differences across workers, is apparent among those who otherwise report good general health and is robust to the inclusion of controls for mental health, life satisfaction and the employee's occupation.