This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Impact of the Locus-of-Control Personality Trait on the Earnings of Entrepreneurs vis-à-vis Employees

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
C. Mirjam van Praag () (Faculty of Economics and Econometrics, Universiteit van Amsterdam)
Justen van der Sluis () (Faculty of Economics and Econometrics, Universiteit van Amsterdam)
Arjen van Witteloostuijn () (University Groningen, and University of Durham)
Abstract

In the management literature, the locus-of-control concept has been applied extensively over the past three decades. This research note reports the results of a panel data study among a representative sample of 6,111 US young citizens who have been interviewed on a regular basis over a period of about two decades. In addition to this, various relevant personality traits and parental background characteristics have been administered before the first wave and before these young people started working. By analyzing this panel dataset, we offer three contributions to the locus-of-control literature. First, we test for the robustness of the locus-of-control effect on individual performance (in terms of hourly earnings) in the context of this impressive panel data context. Second, we explore whether or not the performance impact of the locus-of-control personality trait is different for employees vis-à-vis entrepreneurs. Third, we check whether the performance effect of an individual’s locus-of-control score interacts with her or his level of education. Our findings reveal that internality affects earnings positively, that this effect is stronger for entrepreneurs, and that education positively interacts with internality.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.tinbergen.nl/discussionpapers/04130.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-130/3.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 29 Nov 2004
Date of revision: 18 Sep 2007
Handle: RePEc:dgr:uvatin:20040130

Contact details of provider:
Web page: http://www.tinbergen.nl/

For technical questions regarding this item, or to correct its listing, contact: (Walther Schoonenberg).

Related research
Keywords: Entrepreneur; self-employment; earnings; return to education; locus-of-control; personality;

Find related papers by JEL classification:
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
N3 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mueller, Stephen L. & Thomas, Anisya S., 2001. "Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness," Journal of Business Venturing, Elsevier, vol. 16(1), pages 51-75, January. [Downloadable!] (restricted)
  2. McKinley L. Blackburn & David Neumark, 1993. "Are OLS Estimates of the Return to Schooling Biased Downward? Another Look," NBER Working Papers 4259, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September. [Downloadable!] (restricted)
  4. Justin van der Sluis & Mirjam van Praag & Arjen van Witteloostuijn, 2004. "Comparing the Returns to Education for Entrepreneurs and Employees," Tinbergen Institute Discussion Papers 04-104/3, Tinbergen Institute. [Downloadable!]
  5. Blackburn, McKinley L & Neumark, David, 1993. "Omitted-Ability Bias and the Increase in the Return to Schooling," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 521-44, July. [Downloadable!] (restricted)
    Other versions:
  6. Semeijn, Judith & Boone, Christophe & van der Velden, Rolf & van Witteloostuijn, Arjen, 2005. "Graduates' personality characteristics and labor market entry an empirical study among dutch economics graduates," Economics of Education Review, Elsevier, vol. 24(1), pages 67-83, February. [Downloadable!] (restricted)
  7. Christophe Boone & Arjen Witteloostuijn, 1996. "Ceo Locus of Control and Small Firm Performance: an Integrative Framework and Empirical Test," Journal of Management Studies, Blackwell Publishing, vol. 33(5), pages 667-700, 09. [Downloadable!] (restricted)
  8. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Oxford University Press, vol. 35(4), pages 815-29, October.
Full references

Statistics
Access and download statistics

Did you know? IDEAS also covers the most complete directory of Economics departments and institutes, EDIRC.

This page was last updated on 2009-12-10.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.