Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control

Andrew Clark and Rong Zhu

Working Papers from HAL

Abstract: We use nationally representative panel data from Australia to consider the impact of retirement on individual locus of control, a socio-emotional skill that has substantial explanatory power for a broad range of life outcomes. We establish causality via cohort-specific eligibility age for the Australian Age Pension. We show that retirement leads to increased internal locus of control. This greater sense of internal control can explain around one-third and one-fifth of the positive effects of retirement on health and subjective well-being, respectively. The impact of retirement on control beliefs varies along the distribution of locus of control, with the positive influence being most pronounced for men with a relatively high sense of internal control and for women with a relatively high sense of external control. Last, we provide evidence that locus of control is much more malleable at retirement than the other socio-emotional skills of the Big-Five personality traits, risk and time preferences, and trust.

Keywords: Retirement; Locus of control; Socio-emotional skills; Public pensions (search for similar items in EconPapers)
Date: 2023-12
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04335808v1
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Related works:
Journal Article: Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control (2024)
Working Paper: Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control (2024)
Working Paper: Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control (2024)
Working Paper: Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control (2023)
Working Paper: Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control (2023)
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