The independent woman—locus of control and female labor force participation

Juliane Hennecke ()
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Juliane Hennecke: Otto von Guericke University Magdeburg

Review of Economics of the Household, 2024, vol. 22, issue 1, No 14, 329-357

Abstract: Abstract This paper contributes to the research on heterogeneity in labor force participation decisions between women. This is done by discussing the role of the personality trait locus of control (LOC), a measure of an individual’s belief about the causal relationship between behavior and life outcomes, for differences in participation probabilities. The association between LOC and participation decisions is tested using German survey data, finding that internal women are on average 13 percent more likely to participate in the labor force. These findings are also found to translate into higher employment probabilities at the extensive and intensive margin as well as in a lifetime perspective. Additional analyses identify a strong heterogeneity of the relationship with respect to underlying monetary constraints and social working norms. In line with the existing literature, an important role of LOC for independence preferences as well as subjective beliefs about returns to investments are proposed as theoretical explanations for the findings.

Keywords: Locus of control; Labor supply; Female labor force participation; Personality; Social norms; Women and work (search for similar items in EconPapers)
JEL-codes: D13 J16 J22 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11150-023-09650-0

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