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Search, Effort, and Locus of Control

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  • McGee, Andrew

    ()
    (Simon Fraser University)

  • McGee, Peter

    ()
    (National University of Singapore)

Abstract

We test the hypothesis that locus of control – one's perception of control over events in life – influences search by affecting beliefs about the efficacy of search effort in a laboratory experiment. We find that reservation offers and effort are increasing in the belief that one's efforts influence outcomes when subjects exert effort without knowing how effort influences the generation of offers but are unrelated to locus of control beliefs when subjects are informed about the relationship between effort and offers. These effects cannot be explained by locus of control's correlation with unmeasured human capital, personality traits, and the costs of search – alternative explanations for the relationships between locus of control and search behavior that cannot be ruled out using survey data – as the search task does not vary across treatments, which leads us to conclude that locus of control influences search through beliefs about the efficacy of search effort. Our findings provide evidence that locus of control measures can be used to identify job seekers at risk of becoming "discouraged" and abandoning search.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5948.

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Length: 53 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5948

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Keywords: locus of control; reservation wages; labor market search; experiment;

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  1. Marco Caliendo & Deborah Cobb-Clark & Arne Uhlendorff, 2010. "Locus of Control and Job Search Strategies," Discussion Papers of DIW Berlin 979, DIW Berlin, German Institute for Economic Research.
  2. Piatek, Rémi & Pinger, Pia, 2010. "Maintaining (Locus of) Control? Assessing the Impact of Locus of Control on Education Decisions and Wages," IZA Discussion Papers 5289, Institute for the Study of Labor (IZA).
  3. Thomas DeLeire & Margo Coleman, 2000. "An Economic Model of Locus of Control and the Human Capital Investment Decision," Working Papers 0019, Harris School of Public Policy Studies, University of Chicago.
  4. Samuel Bowles & Herbert Gintis & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior and Earnings," Working Papers 01-01-004, Santa Fe Institute.
  5. Juan D. Barón & Deborah Cobb-Clark, . "Are Young People's Educational Outcomes Linked to their Sense of Control?," Borradores de Economia 599, Banco de la Republica de Colombia.
  6. Groves, Melissa Osborne, 2005. "How important is your personality? Labor market returns to personality for women in the US and UK," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 827-841, December.
  7. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 815-29, October.
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