Change in self-efficacy as a source of state dependence in labor market dynamics?

Alexander Mosthaf ()
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Alexander Mosthaf: Johannes Gutenberg-University Mainz, Germany

No 1715, Working Papers from Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz

Abstract: Personal traits are often treated as time-constant, partly because of the lack of longitudinal data on personal traits. Using the first eight waves of the German PASS panel survey containing yearly information on self-efficacy, the paper analyzes the stability of self-efficacy and the relationship between employment dynamics and self-efficacy. Descriptive evidence shows that the within variation in self-efficacy is rather small. Models not controlling for unobserved heterogeneity point to a positive effect of self-efficacy on the employment probability and vice versa. However, dynamic discrete choice models which take unobserved heterogeneity and reverse causality into account reveal that the impact of employment status on self-efficacy is close to zero.

Keywords: state dependence; personal traits (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017-08
New Economics Papers: this item is included in nep-eur
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Citations: View citations in EconPapers (1)

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https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1715.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:jgu:wpaper:1715

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