Organisational Behaviour and Corporate Success

Over the last decades, organisational economics has established that human factors shape the relationship between employers and employees, employers behave generously towards workers, and workers reciprocate by exerting above minimum effort. Especially non-monetary aspects, such as treating employees fairly, are important determinants of employees’ work motivation. In its first work package, the group focuses on analysing the effects of non-monetary workplace characteristics such as participation leaders’ behaviour the allocation and meaningfulness of work tasks. Current research projects shall extent the latter ones and investigate how digitalization and remote work affects the perceived meaningfulness of work and, therewith, individuals’ work performance.

In the second work package, the group focuses on individuals’ heterogeneous (social) preferences. Two aspects are of special interest here. First, organizations are increasingly facing labour shortages. To handle these shortages, employers need to know how to attract qualified staff and, therefore, we need to learn more about individuals’ preferences. In a first project, Jeworrek and Brachert (2024) find that, even if everything else such as wages or local infrastructure are held constant, high-skilled workers have a preference for working in an urban firm. Knowing that this preference is solely driven by individuals who were born and raised in urban areas, as the second major finding of this project, helps rural firms to derive appropriate hiring measures and strategies. In the next projects, the group will investigate individuals’ preferences for working in a startup vs. an incumbent firm. Finally, we also look at the hiring process itself. Given that AI tools can assist the hiring process, we will investigate how the use of such tools is perceived and whether it influences individuals’ willingness to apply for a job. The second aspect related to individuals’ preferences is the question of how regulation affects such preferences. Here we plan to analyse whether bank employees’ social responsibility might be crowded out by stricter regulations, possibly leading to unintended side effects of regulatory measures that should be taken into account when designing and implementing future regulatory reforms. 

The research group makes primarily use of self-collected data since clean individual behaviour and preferences data can best be obtained by conducting (field) experiments. Holding all things equal for every participating individual except for the treatment of interest, any change in workers’ behaviour or preferences can be put down to the experimenter’s intervention.

Workpackage 1:        The Behavioral Impact of Non-Monetary Workplace Characteristics

Workpackage 2:        Handling Individuals’ (Social) Preferences

 

Research Cluster
Productivity and Institutions

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Professor Dr Sabrina Jeworrek
Professor Dr Sabrina Jeworrek
- Department Laws, Regulations and Factor Markets
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Refereed Publications

Are Rural Firms Left Behind? Firm Location and Perceived Job Attractiveness of High-skilled Workers

Matthias Brachert Sabrina Jeworrek

in: Cambridge Journal of Regions, Economy and Society, No. 1, 2024

Abstract

We conduct a discrete choice experiment to investigate how the location of a firm in a rural or urban region affects the perceived job attractiveness for university students and graduates and, therewith, contributes to the rural–urban divide. We characterize the attractiveness of a location based on several dimensions (social life, public infrastructure and connectivity) and vary job design and contractual characteristics of the job. We find that job offers from companies in rural areas are generally considered less attractive, regardless of the attractiveness of the region. The negative perception is particularly pronounced among persons of urban origin and singles. In contrast, for individuals with partners and kids this preference is less pronounced. High-skilled individuals who originate from rural areas have no specific regional preference at all.

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Competition and Moral Behavior: A Meta-Analysis of Forty-Five Crowd-Sourced Experimental Designs

Anna Dreber Felix Holzmeister Sabrina Jeworrek Magnus Johannesson Joschka Waibel Utz Weitzel et al.

in: Proceedings of the National Academy of Sciences of the United States of America (PNAS), No. 23, 2023

Abstract

Does competition affect moral behavior? This fundamental question has been debated among leading scholars for centuries, and more recently, it has been tested in experimental studies yielding a body of rather inconclusive empirical evidence. A potential source of ambivalent empirical results on the same hypothesis is design heterogeneity—variation in true effect sizes across various reasonable experimental research protocols. To provide further evidence on whether competition affects moral behavior and to examine whether the generalizability of a single experimental study is jeopardized by design heterogeneity, we invited independent research teams to contribute experimental designs to a crowd-sourced project. In a large-scale online data collection, 18,123 experimental participants were randomly allocated to 45 randomly selected experimental designs out of 95 submitted designs. We find a small adverse effect of competition on moral behavior in a meta-analysis of the pooled data. The crowd-sourced design of our study allows for a clean identification and estimation of the variation in effect sizes above and beyond what could be expected due to sampling variance. We find substantial design heterogeneity—estimated to be about 1.6 times as large as the average standard error of effect size estimates of the 45 research designs—indicating that the informativeness and generalizability of results based on a single experimental design are limited. Drawing strong conclusions about the underlying hypotheses in the presence of substantive design heterogeneity requires moving toward much larger data collections on various experimental designs testing the same hypothesis.

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The Effect of Community Managers on Online Idea Crowdsourcing Activities

Lars Hornuf Sabrina Jeworrek

in: Journal of the Association for Information Systems, No. 1, 2022

Abstract

In this study, we investigate whether and to what extent community managers in online collaborative communities can stimulate community activities through their engagement. Using a novel data set of 22 large online idea crowdsourcing campaigns, we find that moderate but steady manager activities are adequate to enhance community participation. Moreover, we show that appreciation, motivation, and intellectual stimulation by community managers are positively associated with community participation but that the effectiveness of these communication strategies depends on the form of participation managers wish to encourage. Finally, the data reveal that community manager activities requiring more effort, such as media file uploads vs. simple written comments, have a stronger effect on community participation.

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The Urban Wage Premium in Imperfect Labour Markets

Boris Hirsch Elke J. Jahn Alan Manning Michael Oberfichtner

in: Journal of Human Resources, April 2022

Abstract

Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from greater competition in denser labor markets. We show that employers possess less wage-setting power in denser markets. We further document that an important part of the observed urban wage premia can be explained by greater competition in denser labor markets.

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Mission, Motivation, and the Active Decision to Work for a Social Cause

Sabrina Jeworrek Vanessa Mertins

in: Nonprofit and Voluntary Sector Quarterly, No. 2, 2022

Abstract

The mission of a job affects the type of worker attracted to an organization but may also provide incentives to an existing workforce. We conducted a natural field experiment with 246 short-term workers. We randomly allocated some of these workers to either a prosocial or a commercial job. Our data suggest that the mission of a job has a performance-enhancing motivational impact on particular individuals only, those with a prosocial attitude. However, the mission is very important if it has been actively selected. Those workers who have chosen to contribute to a social cause outperform the ones randomly assigned to the same job by about half a standard deviation. This effect seems to be a universal phenomenon that is not driven by information about the alternative job, the choice itself, or a particular subgroup.

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Working Papers

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Inflation Concerns and Green Product Consumption: Evidence from a Nationwide Survey and a Framed Field Experiment

Sabrina Jeworrek Lena Tonzer

in: IWH Discussion Papers, No. 10, 2024

Abstract

Promoting green product consumption is one important element in building a sustainable society. Yet green products are usually more costly. In times of high inflation, not only budget constraints but also the fear that prices will continue to rise might dampen green product consumption and, hence, limit the effectiveness of exerted efforts to promote sustainable behaviors. To test this suggestion, we conducted a Germany-wide survey with almost 1,200 respondents, followed by a framed field experiment (N=500) to confirm causality. In the survey, respondents’ stated “green” purchasing behavior is, as to be expected, positively correlated with concerns about climate change. It is also negatively correlated with concerns about future inflation and energy costs, but after controlling for observable characteristics such as income and educational level only the correlation with concerns about future prices remains significant. This result is driven by individuals with below-median environmental attitude. In the framed field experiment, we use the priming method to manipulate the saliency of inflation concerns. Whereas sizably relaxing the budget constraint (i.e., by 50 percent) has no impact on the share of organic products in participants’ baskets, the priming significantly decreases the share of organic products for individuals with below-median environmental attitude, similar to the survey data.

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Where to Go? High-skilled Individuals’ Regional Preferences

Sabrina Jeworrek Matthias Brachert

in: IWH Discussion Papers, No. 27, 2022

Abstract

We conduct a discrete choice experiment to investigate how the location of a firm in a rural or urban region affects job attractiveness and contributes to the spatial sorting of university students and graduates. We characterize the attractiveness of a location based on several dimensions (social life, public infrastructure, connectivity) and combine this information with an urban or rural attribution. We also vary job design as well as contractual characteristics of the job. We find that job offers from companies in rural areas are generally considered less attractive. This is true regardless of the attractiveness of the region. The negative perception is particularly pronounced among persons with urban origin and singles. These persons rate job offers from rural regions significantly worse. In contrast, high-skilled individuals who originate from rural areas as well as individuals with partners and kids have no specific preference for jobs in urban or rural areas.

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Alone at Home: The Impact of Social Distancing on Norm-consistent Behavior

Sabrina Jeworrek Joschka Waibel

in: IWH Discussion Papers, No. 8, 2021

Abstract

Around the globe, the COVID-19 pandemic has turned daily live upside down since social distancing is probably the most effective means of containing the virus until herd immunity is reached. Social norms have been shown to be an important determinant of social distancing behaviors. By conducting two experiments and using the priming method to manipulate social isolation recollections, we study whether social distancing has in turn affected norms of prosociality and norm compliance. The normative expectations of what behaviors others would approve or disapprove in our experimental setting did not change. Looking at actual behavior, however, we find that persistent social distancing indeed caused a decline in prosociality – even after the relaxation of social distancing rules and in times of optimism. At the same time, our results contain some good news since subjects seem still to care for norms and become more prosocial once again after we draw their attention to the empirical norm of how others have previously behaved in a similar situation.

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