An Economic Model of Locus of Control and the Human Capital Investment Decision
This paper presents an economic model of how teenagers’ outlooks–specifically their locus of control–affect human capital investments. Locus of control, or internal-external attitudes, is a psychological measure of a person’s belief regarding the causal relationship between his or her own behavior and outcomes. The model allows locus of control to operate through teenagers’ assessment of the return to human capital investments and has testable implications that distinguish it from a model in which locus of control is a proxy for unobserved ability. The effect of eighth graders’ locus of control on their decisions to complete high school and to attend college is empirically examined using the National Education Longitudinal Study of 1988. The empirical results indicate that locus of control strongly influences the decision to invest in education. The results also show that locus of control operates through teenagers’ expectations of the returns to human capital investments, confirming the implications of the theoretical model.
|Date of creation:||Sep 2000|
|Date of revision:|
|Contact details of provider:|| Postal: 1155 East 60th Street, Chicago, IL 60637|
Web page: http://harrisschool.uchicago.edu/
More information through EDIRC
This item is featured on the following reading lists or Wikipedia pages:
When requesting a correction, please mention this item's handle: RePEc:har:wpaper:0019. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleanor Cartelli)The email address of this maintainer does not seem to be valid anymore. Please ask Eleanor Cartelli to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.