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Effects of positive attitude on earnings: Evidence from the US longitudinal data

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  • Mohanty, Madhu S.

Abstract

To examine whether or not the worker's attitude to life affects his/her earnings, this study estimates wage equations with positive attitude as an explanatory variable under different econometric specifications. The results obtained from both cross-sectional and panel data confirm that positive and optimistic attitude to life influence the worker's wages positively, and that the magnitude of this effect is comparable to or even higher than the individual effects of the standard human capital variables on earnings. The study further demonstrates that in addition to its direct effects, positive attitude also affects earnings indirectly through its effects on schooling.

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  • Mohanty, Madhu S., 2009. "Effects of positive attitude on earnings: Evidence from the US longitudinal data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 357-371, March.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:357-371
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    2. Madhu S. Mohanty, 2018. "Does Positive Attitude Matter Only for Older Workers? Evidence from Simultaneous Estimation of Job Satisfaction, Wage and Positive Attitude in the United States," Journal of Happiness Studies, Springer, vol. 19(8), pages 2373-2404, December.
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    4. Mohanty, Madhu Sudan, 2010. "Effects of positive attitude and optimism on employment: Evidence from the US data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 258-270, April.
    5. Kelsey J. O'Connor & Stefano Bartolini, 2025. "Effects of Teaching Practices on Life Satisfaction and Test Scores: Evidence From the Program for International Student Assessment (PISA)," Kyklos, Wiley Blackwell, vol. 78(3), pages 749-774, August.
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    7. Kelsey J. O'Connor, 2020. "Life Satisfaction and Noncognitive Skills: Effects on the Likelihood of Unemployment," Kyklos, Wiley Blackwell, vol. 73(4), pages 568-604, November.
    8. Madhu S. Mohanty, 2016. "Effect of religious attendance on years of schooling in the USA," Education Economics, Taylor & Francis Journals, vol. 24(4), pages 411-426, August.
    9. Miguel Lopes & Patricia Palma & Miguel e Cunha, 2011. "Tolerance is Not Enough: The Moderating Role of Optimism on Perceptions of Regional Economic Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 333-350, June.
    10. Vinod Mishra & Russell Smyth, 2012. "It Pays to Be Happy (If You are a Man): Subjective Wellbeing and the Gender Wage Gap in Urban China," Monash Economics Working Papers 51-12, Monash University, Department of Economics.
    11. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.
    12. Bidisha Chakraborty & Souparna Maji & Anamika Sen & Isha Mallik & Sayantan Baidya & Esha Dwibedi, 2019. "A Study on Happiness and Related Factors Among Indian College Students," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 215-236, March.
    13. Uysal, Selver Derya & Pohlmeier, Winfried, 2011. "Unemployment duration and personality," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 980-992.
    14. Ertan Yörük, Ceren & Yörük, Barış K., 2012. "The impact of drinking on psychological well-being: Evidence from minimum drinking age laws in the United States," Social Science & Medicine, Elsevier, vol. 75(10), pages 1844-1854.
    15. Mohanty, Madhu S. & Ullah, Aman, 2012. "Direct and indirect effects of happiness on wage: A simultaneous equations approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 143-152.
    16. Mohanty, Madhu Sudan, 2012. "Effects of positive attitude and optimism on wage and employment: A double selection approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 304-316.
    17. Wim Naudé & José Ernesto Amorós & Oscar Cristi, 2011. "‘Surfeiting, The Appetite May Sicken’: Entrepreneurship and the Happiness of Nations," Working Papers 2011/07, Maastricht School of Management.
    18. Nasir Javed Awan, 2024. "Unveiling Charismatic Leadership: Catalysts of Positive Work Attitude, Job Involvement, and Work Engagement," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 532-545.
    19. Marta Lachowska, 2017. "Outside options and wages: What can we learn from subjective assessments?," Empirical Economics, Springer, vol. 52(1), pages 79-121, February.
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    21. Zhen Cui, 2018. "Happiness and consumption: evidence from China," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 403-419, December.

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