Locus of Control and low-wage mobility

Daniel Schnitzlein and Jens Stephani

Journal of Economic Psychology, 2016, vol. 53, issue C, 164-177

Abstract: We investigate whether non-cognitive skills – in particular Locus of Control – are important determinants of mobility processes for male workers at the low-wage margin. Our results reveal a significant amount of state dependence in low pay even after controlling for non-cognitive skills. Furthermore, compared to individuals with an external Locus of Control, individuals with a more internal Locus of Control have a significantly higher probability of being higher-paid instead of low-paid. Conditional on being low-paid, individuals with an internal Locus of Control have a significantly higher probability of moving to higher-paid employment in the following year than individuals with an external Locus of Control. Our results suggest that having an internal Locus of Control is an important non-cognitive skill in the context of low wages. It may help individuals to avoid low-wage jobs and to move from low-paid jobs to higher-paid jobs.

Keywords: Low-wage; Wage mobility; Non-cognitive skills; SOEP (search for similar items in EconPapers)
JEL-codes: J30 J60 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Working Paper: Locus of Control and Low-Wage Mobility (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:53:y:2016:i:c:p:164-177

DOI: 10.1016/j.joep.2016.01.004

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