Events

This paper challenges the conventional belief that entrepreneurship is an unstable career path. Entrepreneurship is shown to decrease rather than increase individuals’ turnover tendencies. This finding persists after controlling for lock-in effects associated with sunk costs and unfavorable outside options.

Entrepreneurship is argued to represent a high quality job-match for individuals who otherwise portray above average turnover rates. Arguably, matching emerges from (i) preferences for independence, (ii) skills composition, and (iii) redeployability of human capital into new settings. The counter-intuitive finding – entrepreneurship yields greater employment stability – has fundamental implications for our understanding of entrepreneurship entry and labor market dynamics.

We study the effect of incentives on different dimensions of creative work. To do so, we introduce a novel real-effort task that allows us to measure quantity, usability, and novelty of individuals’ creative output. In three treatments, we introduce incentives either for quantity alone or for quantity in combination with usability or novelty. We compare performance in these treatments to a baseline with fixed incentives. We find that incentivizing quantity alone or quantity in combination with novelty results in an increase in quantity and novelty and a decrease in the average quality compared to the baseline. Combined incentives for quality and quantity do not have a significant effect on any of the dimensions of creativity. Our findings are in line with a multi-tasking model where agents choose an optimal allocation of effort between quantity and usability and novelty is negatively correlated to quality. (Authors: Katharina Laske/Marina Schröder)

This paper focuses on the validation of data obtained from Google Trends as a measure of brand strength. We focus on brands of car manufacturers and types and show that searches on Google Trends predict registrations of cars in long panels. We use data for Germany and for the United Kingdom. To deal with endogeneity we make use of the introduction of scrappage subsidies in 2008/2009 as a natural experiment. We identify and address challenges from non-stationarity and serial correlation in the data. (Authors: Georg von Graevenitz/Christian Helmers)