Mario Mechtel

Employment Protection and Temporary Work Agencies

Employers who use temporary agency staff in contrast to regular staff are not affected by employment protection regulations when terminating a job. Therefore, services provided by temporary work agencies may be seen as a substitute for regular employment. In this paper, we analyze the effects of employment protection on the size of the temporary work agency sector in a model of equilibrium unemployment. We find that higher firing costs may even reduce temporary work agency employment if agencies themselves are subject to employment protection, a consideration which distinguishes our results from those for fixed-term employment arrangements.

What Makes Us Want to Have More Than Others? Explaining Relative Consumption Effects of Public and Private Goods

We conduct a survey with 264 participants to test for relative consumption effects of national and local public goods as well as private goods. In contrast to previous results, we find that relative consumption effects are more pronounced for private goods than for public goods. Our second finding is that relative consumption effects are less pronounced for local public goods than for national public goods. We discuss and test different explanations for a goods degree of positionality and find that these can, in part, account for our results very well.

Positional Income Concerns: Prevalence and Relationship with Personality and Economic Preferences

This paper presents detailed evidence about who compares to whom in terms of relative income. We rely on representative survey data on the importance of income comparisons vis-a-vis seven reference groups, allowing us to exploit within-subject heterogeneity. We explore the prevalence and determinants of positional income concerns, investigating the role of personality and economic preferences. Our results establish robust relationships between positional income concerns and the personality traits agreeableness, conscientiousness, and neuroticism, some of which depend on the reference group. Furthermore, risk and fairness preferences are significantly correlated with positional income concerns.

Beating Thy Neighbor: Derby Effects in German Professional Soccer

It is widely acknowledged that derbies between two teams from the same city or region catch more public attention than “normal” soccer matches. Terms such as “Old Firm” (Rangers vs. Celtic), “Merseyside” (Liverpool FC vs. Everton FC), “Superclasico” (Boca Juniors vs. River Plate), and “Revierderby” (Dortmund vs. Schalke) are well-known even to people outside their respective countries of origin. Using data from the German Bundesliga from 1999 to 2009, we test whether derbies differ from other soccer matches with respect to the number of goals scored by each team, match results, and referee evaluations. The results are very surprising given the enormous amount of public attention that derbies with their special character attract: we find that there are no significant differences between derbies and “normal” matches. Despite the importance of derbies for fans and the public, they turn out to be “normal” soccer matches in all other respects.

Choosing Who You Are: The Structure and Behavioral Effects of Revealed Identification Preferences

Social identity is an important driver of behavior. But where do differences in social identity come from? We use a novel laboratory experiment to measure individual identification preferences as a potential source of behavioral heterogeneity. Facing a trade-off between monetary payments and belonging to different groups, individuals are willing to forego significant earnings to avoid certain groups and thereby reveal their identification preferences. We then show that these identification preferences are systematically related to behavioral heterogeneity in groupspecific social preferences. These results illustrate the importance of identification as a choice and its relevance for explaining individual behavior.A large body of evidence shows that social identity affects behavior. However, our understanding of the substantial variation of these behavioral effects is still limited. We use a novel laboratory experiment to measure differences in preferences for social identities as a potential source of behavioral heterogeneity. Facing a trade-off between monetary payments and belonging to different groups, individuals are willing to forego significant earnings to avoid belonging to certain groups. We then show that individual differences in these foregone earnings correspond to the differences in discriminatory behavior towards these groups. Our results illustrate the importance of considering individual heterogeneity to fully understand the behavioral effects of social identity.

Relative Consumption Concerns or Non-Monotonic Preferences?

We conduct a classroom survey to investigate the willingness to sacrifice consumption in absolute terms in order to ascend above others in terms of consumption levels. In contrast to other studies using survey methodologies, participants are divided into a treatment and a control group. This allows us to distinguish whether choosing less in absolute terms is really induced by relative consumption concerns, or else by nonmonotonic preferences. We find that relative consumption concerns provide a good explanation for choosing less in the case of some goods, while this is not the case for a number of other goods.

Do Children Cooperate Conditionally? Adapting the Strategy Method for First-Graders

We develop a public goods game (PGG) to measure cooperation and conditional cooperation in young children. Our design addresses several obstacles in adapting simultaneous and sequential PGGs to children who are not yet able to read or write, do not possess advanced abilities to calculate payo s, and only have a very limited attention span at their disposal. It features the combination of haptic online explanation, fully standardized audiovisual instructions, computerized choices based on touchscreens, and a suitable incentive scheme. Applying our experimental protocol to a sample of German first-graders, we find that already 6-year-olds cooperate conditionally and that the relative frequency of di erent cooperation types matches the findings for adult subjects. We also find that neither survey items from teachers nor from parents predict unconditional or conditional cooperation behavior; this underlines the value of incentivized experimental protocols for measuring cooperation in children.

Positional income concerns and personality: evidence from Germany

ABSTRACT Positional income concerns (PIC) strongly influence economic behaviour and life outcomes. However, very little is known about the underlying heterogeneity regarding their importance across individuals on the one hand and across different reference groups on the other. Our analysis builds on representative survey data reporting PIC vis-à-vis seven reference groups, allowing us to identify marked heterogeneity both between and within subjects. We present evidence about who (in terms of personality) compares to whom (in terms of reference group).

Beating thy neighbor

Summary It is widely acknowledged that derbies between two teams from the same city or region catch more public attention than “normal” soccer matches. Terms such as “Old Firm” (Rangers vs. Celtic), “Merseyside” (Liverpool FC vs. Everton FC), “Superclásico” (Boca Juniors vs. River Plate), and “Revierderby” (Dortmund vs. Schalke) are well-known even to people outside their respective countries of origin. Using data from the German Bundesliga from 1999 to 2009, we test whether derbies differ from other soccer matches with respect to the number of goals scored by each team, match results, and referee evaluations. The results are very surprising given the enormous amount of public attention that derbies with their special character attract: we find that there are no significant differences between derbies and “normal” matches. Despite the importance of derbies for fans and the public, they turn out to be “normal” soccer matches in all other respects.