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Locus of Control and low-wage mobility

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  • Schnitzlein, Daniel D.
  • Stephani, Jens

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.

Suggested Citation

  • Schnitzlein, Daniel D. & Stephani, Jens, 2016. "Locus of Control and low-wage mobility," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 164-177.
  • Handle: RePEc:eee:joepsy:v:53:y:2016:i:c:p:164-177
    DOI: 10.1016/j.joep.2016.01.004
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    More about this item

    Keywords

    Low-wage; Wage mobility; Non-cognitive skills; SOEP;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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