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Abstract:
Complementing prior research on income mobility and educational transmission, we provide evidence on the intergenerational transmission of cognitive abilities using data from the German Socio-Economic Panel Study. Our estimates suggest that individuals' cognitive skills are positively related to the abilities of their parents, even when educational attainment and family background is controlled for. We differentiate between mothers' and fathers' IQ transmission and find different effects on the cognition of sons and daughters. We show that cognitive skills which are based on past learning are more strongly transmitted from parents to children than cognitive skills which are related to innate abilities. Our findings are not compatible with a pure genetic model, but rather point to the importance of parental investments for the cognitive outcomes of children.

Cognitive abilities, intergenerational IQ transmission, skill formation

Abstract:
We provide the first joint evidence on the relationship between individuals' cognitive abilities, their personality and earnings for Germany. Using data from the German Socio-Economic Panel Study, we employ scores from an ultra-short IQ-test and a set of measures of personality traits, namely locus of control, reciprocity and all basic items from the Five Factor Personality Inventory. Our estimates suggest a positive effect of so-called fluid intelligence or speed of cognition on males' wages only. Findings for personality traits are more heterogeneous. There however is a robust wage penalty for an external locus of control for both men and women.

Cognitive abilities, personality traits, Five Factor Model, Locus of control, reciprocity, wages

Abstract:
After 25 years as a multidisciplinary household panel containing information on all individuals residing in panel households and thus covering all age cohorts, the German Socio-Economic Panel (SOEP) has become a true cohort study as well. The increasing success of the SOEP research infrastructure comes above all from the increasing analytical power that longitudinal studies attain with each successive survey year. In the case of SOEP, a long series of innovations in surveying, data preparation, and user service have also played a major role. For this reason, it is important to consider how the scientific capacity of SOEP can be further enhanced - not least of all since the SOEP can form a key point of reference (or "anchor") for new, specialized panel studies (such as the National Educational Panel and the family panel PAIRFAM, funded by the German Research Foundation). And SOEP can become a kind of "control sample" for intervention studies, for example, in the field of child development. The SOEP survey and its governance structures must be prepared for these new tasks.

The numerous innovations introduced into SOEP in recent years-questions dealing with psychological concepts, physical health measures (grip strength), measures of cognitive capabilities, and behavioral experiments - have been incorporated into other panel studies as well, and thus provided with a larger sample base. In the UK, the "Understanding Society" household panel study was launched with 40,000 households; in the Netherlands, the MESS household panel study of over 5,000 households offered a new basis for testing innovative measurement methods.

The results of the SOEP survey are in continuing high demand in the research and policy advisory community. From our point of view, the large-scale consultation process conducted to define the content of the UK survey "Understanding Society" failed to identify any fundamentally new survey content that the SOEP either did not already contain or that was not already being discussed for the SOEP. More important than "discovering" entirely new survey areas is "tailoring" the details of existing survey content to address new, more specific (theoretical) questions, and thus maintaining proven and widely used elements of survey content. The "tailoring" of survey content will be the real challenge facing infrastructure surveys like PSID, "Understanding Society," and the SOEP in the coming years.

In the future, the "margins" of the life course should play a stronger role in survey content, since household panels are able to provide outstanding data of these life phases. The SOEP, and other household panel surveys, can be improved, on the one hand, by including the fetal phase of life and early childhood for children born into the panel, and on the other, by including late life and death. In the middle of the life course, improved questions on income, savings, and wealth as well as psychological constructs will play a central role, as will specific questions (in "event-triggered" questionnaires) on central life occurrences such as marriage, divorce, and entry into and exit from unemployment.

Current plans for SOEP foresee the addition of an "Innovation Sample" that will make it possible to better address theory-based research questions required for testing new measurement concepts (e.g., the surveying of biomarkers, qualitative surveys, but also experiments and targeted intervention studies). In order to exploit the power of longitudinal data from the outset, we plan to incorporate two smaller SOEP subsamples that have been running since 1998 and 2006 (Subsamples E and H, respectively) into the Innovation Sample.

In order to decisively improve the statistical power of long-term longitudinal data, we believe that a minimum case number of about 500 persons per birth and age cohort is required. In order to reach this goal, the case number in the SOEP standard samples needs to be increased. A positive side-effect of this enlargement would be a significantly improved potential for analyses of relatively small groups within the population: for example, lone parents or specific immigrant groups. Another positive side-effect would be an improved potential for regional analyses: for example, for the majority of federal states.

In recent times, the importance of SOEP as a "reference dataset" for specialized surveys which are independent from SOEP (observational studies such as twin studies, and laboratory and intervention studies) has become strikingly evident. To enhance this important function, new types of service are needed (advice on special surveys, possibly also data preparation for special surveys), which could become part of a Data Service Center.

Household Panels, German Socio-Economic Panel Study, SOEP

Abstract:
Using individual based micro-data from the German Socio-Economic Panel Study (SOEP), I analyze the cyclicality of real wages for male workers within employer-employee matches over the period 1984-2004, and compare different wage measures: the standard hourly wage rate, hourly wage earnings including overtime and bonus payments, and the effective wage, which takes into account not only paid overtime, but also unpaid working hours. None of the hourly wage measures is shown to exhibit cyclicality except for the group of salaried workers with unpaid overtime. Their effective wages react strongly to changes in unemployment in a procyclical way. Despite acyclical wage rates, salaried workers without unpaid hours but with income from extra payments, such as bonuses, experienced procyclical earnings movements. Monthly earnings were also procyclical for hourly paid workers who received overtime payments. The procyclicality of earnings revealed for Germany is of comparable size with the one in the U.S..

wage cyclicality, effective wages, unpaid overtime, bonus payments, firm stayers